BMI Country Risk & Industry Research has revised its forecast for the Malaysian ringgit, projecting a further appreciation to RM4 per US dollar by the end of 2024. This upward revision is based on the strong performance of the ringgit in the third quarter of 2024, which saw it gain a substantial 12.1%.

The positive outlook for the ringgit is underpinned by several factors. The narrowing yield gap between US and Malaysian government bonds has made the ringgit more attractive to investors seeking higher returns. Additionally, Malaysia's resilient economy, characterized by steady growth and strong fundamentals, has contributed to the ringgit's strength.

While the overall outlook for the ringgit is positive, BMI has cautioned that risks remain. The US Federal Reserve's monetary policy decisions and China's economic growth could impact the ringgit's performance. Short-term fluctuations are expected, but BMI maintains its forecast of RM3.55 per US dollar by the end of 2025, supported by anticipated interest rate cuts from the Fed.