KUALA LUMPUR, May 2 (Xinhua) -- MIDF Research on Thursday anticipated the ringgit to average around MYR 4.53 against U.S. dollars in 2024 as compared to MYR 4.56 in 2023.

The research house also expects the ringgit to trend towards MYR 4.43 by the end of the year, as compared to MYR 4.59 at the end of 2023.

MIDF said in a note that it continued to expect the ringgit and other regional currencies will benefit from the inflow of foreign funds into emerging markets, particularly when the U.S. Federal Reserve reduces its federal funds rate (FFR).

"However, given the smaller-than-anticipated FFR cuts and the recent sustained strength of the dollar, we predict a more modest appreciation of the ringgit than initially forecast," said the research house.

Moreover, it said the ringgit will benefit from a revival in external trade activities as Malaysia consistently maintains a trade surplus.

Nonetheless, it noted that the potential U.S. recession and ongoing issues affecting global trade and manufacturing sectors may limit the ringgit's performance.

Furthermore, it said a continued robust performance of the U.S. dollar, especially if the Federal Reserve delays rate cuts due to persistently high inflation or better-than-expected U.S. economic growth, could further weaken the ringgit's prospects. Enditem

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