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Mid-2025 Outlook for the Malaysian Ringgit Shows Modest Appreciation
The Malaysian ringgit (MYR) is expected to show a modest appreciation against the US dollar (USD) in mid-2025, according to recent market analysis. This positive outlook is primarily driven by a more stable global trade outlook and expectations that the Federal Open Market Committee (FOMC) will avoid aggressive rate hikes.
In July 2025, the MYR/USD rate is projected to be around 0.236 to 0.238 USD per MYR. This reflects a relative strength compared to earlier in the year, as the ringgit has increased about 5.61% in value relative to the US dollar so far in 2025.
The trade truce between major economies has likely eased concerns over trade tensions, supporting emerging market currencies like the ringgit. Market participants anticipate a cautious FOMC meeting, with moderated or steady US interest rates, which dampens the US dollar’s strength and supports currencies like the MYR.
The average MYR to USD rate in 2025 is estimated to be about 0.2296 USD per MYR, above the low early-year levels, consistent with moderate ringgit appreciation. On an inverse basis (MYR per USD), exchange rates hover around 4.2 to 4.3 ringgit per dollar, showing ringgit gains versus the dollar.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid made these statements. It remains to be seen whether this will effectively narrow the trade balance in the near term.
The cost of doing business in the US is likely to rise, and it also appears the US may be relying on a weaker dollar to boost export competitiveness. Consensus expects no change to the Federal Funds Rate, currently at 4.25% to 4.50%. An analyst stated that the US and the European Union had agreed to a 15% tariff on most EU imports, while most US imports would face zero tariff under the deal.
The ringgit opened marginally higher against the US dollar in early trade on Monday, with the local note standing at 4.2110/2310 versus the greenback at 8am. Most countries appear accommodative in offering favorable terms to the US, which may continue to support the ringgit's stability and potential appreciation.
- The modest appreciation of the Malaysian ringgit in mid-2025 is linked to positive news in the finance sector, with a more stable global trade outlook and anticipation of cautious FOMC meetings.
- In Kuala Lumpur's business world, the strong Malaysian ringgit against the US dollar is seen as a result of the trade truce between major economies and expectations of moderated US interest rates.
- The cost of doing business in the US may rise, but the weaker US dollar and favorable terms offered by most countries are factors that could continue to support the Malaysian ringgit's stability and potential appreciation in the financial news of Kuala Lumpur.
