KUALA LUMPUR, Jan. 13 (Xinhua) -- BMI Country Risk and Industry Research has revised its Malaysian ringgit forecast and expected the ringgit to appreciate from 4.50 ringgits against the U.S. dollar currently to 4.40 ringgits against the dollar by end-2025.

The Fitch research unit said in a recent note that it expects interest rate differentials between the U.S. and Malaysia to narrow in favor of the ringgit.

It also noted that the momentum indicators are starting to look oversold, which should lead to short-term appreciation for the ringgit.

In 2024, the Malaysian ringgit emerged as the top performing emerging market currency in Asia, appreciating 2.7 percent over the course of the year.

Over the medium term, the ringgit looks set to remain on a gradual appreciatory trend on the back of a robust growth outlook and sustained current account surplus, according to the BMI.

The research house also anticipated a slower appreciation in the ringgit and expected it to strengthen marginally to touch 4.30 ringgits against the dollar by end-2026. Enditem

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