KUALA LUMPUR, 31 August 2025 – The Malaysian ringgit is projected to navigate a sideways trajectory with a subtle upside bias next week, as market participants await clarity from Bank Negara Malaysia’s (BNM) upcoming Monetary Policy Committee meeting scheduled for early September. This outlook was outlined by a prominent economist during a press briefing today.
AmBank Group chief economist, Firdaos Rosli, expects the ringgit to remain largely range-bound within RM4.20–RM4.25 per US dollar in the coming weeks. He anticipates a gradual strengthening to about RM4.27 by the end of 2025, supported by sustained forex trading volumes and Malaysia’s stable monetary policy framework. His forecast revises earlier projections—previously around RM4.45—downward following notable market developments including tariff negotiations and Malaysia’s economic resilience.
Key factors underpinning this outlook include:
- Potential US rate cuts: Market consensus now leans toward two interest rate cuts by the US Federal Reserve this year—possibly beginning in September. Should this materialize, a weaker US dollar could translate into appreciation pressure on the ringgit.
- Supportive macro fundamentals: Malaysia continues to benefit from a current account surplus, healthy foreign exchange reserves, and inflows from foreign direct investment.
- External headwinds: Lingering uncertainty over semiconductor tariffs and the strength of Malaysia’s trade account could temper any substantial gains.
Regional & Global Implications
For Southeast Asia, a stable ringgit is vital. It bolsters investor confidence, supports regional trade competitiveness, and encourages capital flows within platforms like ASEAN and RCEP. A firmer MYR also increases purchasing power for cross-border transactions, benefitting consumer markets in neighbouring economies.
Furthermore, the ringgit’s performance serves as a barometer for Asia’s broader currency resilience amid Fed policy shifts. Clarity on rate cuts and geopolitical developments could catalyse a wider regional FX rally—something markets across emerging Asia are watching closely.
