The ringgit recovered its losses and hit a six-month high, reaching 4.6065 against the US dollar at one point! 💵

Recovering this year's losses, the ringgit surpassed 4.6

(KUALA LUMPUR 31st) As government funds and companies respond to the government's call to transfer funds back to the country, and the market expects the Federal Reserve to speed up the pace of interest rate cuts, push the ringgit exchange rate to break through the 4.6 level and recover lost ground since this year!

As of 6 p.m., the exchange rate of the ringgit was reported at RM4,905 to the US dollar, up 0.68% from yesterday.

According to Bloomberg, after falling to a 26-year low in February, the ringgit has now successfully rebounded and erased all losses since the beginning of the year.

It is worth noting that OCBC Bank previously predicted that it would take until mid-2025 for the MYR to return to the 4.60 level against the US dollar, but now it has completely surpassed the target and is approaching the 4.59 level.

Best in Asia

Today, the ringgit has become one of the best-performing currencies in Asia this year, because the Bank of China has continuously encouraged state-owned enterprises to exchange foreign exchange for ringgit and has stepped up efforts to use forward contracts to support the ringgit trend.

Moreover, the return of the global technology cycle to an upward trend will help drive export recovery, and once the Federal Reserve presses the lower interest rate button, the interest rate spread between the ringgit and the US dollar will narrow as a result.

Huang Jinglong, a foreign exchange strategist at OCBC Bank, said that as the Federal Reserve may start cutting interest rates, he believes the interest rate gap between the two countries will be further improved, and at the same time, the ringgit exchange rate can also use this to recover some of its lost ground.

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