Economist: The US dollar is expected to trade around 4.05-4.10 against the Malaysian Ringgit in the third quarter.

Kenanga economists stated in a report that amid ongoing geopolitical uncertainties, they expect the USD/MYR to trade in the range of 4.05-4.10 in the third quarter, and to fall below 4.00 in the fourth quarter. Additionally, the market reflects expectations that the Federal Reserve will maintain its current stance rather than further tightening. Global reserve diversification, portfolio adjustments, and concerns about US fiscal sustainability support the mid-term weakening of the US dollar. They also mentioned that Malaysia's strong fundamentals, including robust growth prospects, consistent current account surplus, and record foreign currency deposits, provide further support. Kenanga predicts that the MYR will gradually appreciate, reaching 3.95 against the USD by the end of the year, and 3.90 by the end of 2027. However, they also noted that domestic political uncertainties remain a key downside risk. The USD has recently risen by 0.3%, reaching 4.0951.