Forecasts for the Malaysian ringgit change all the time, affected by news events such as the Coronavirus and relative sentiment towards the Malaysian economy. This continually updated article reviews MYR bank forecasts and popular cross-rate trends.
The ringgit is expected to weaken further in the coming months on the back of lower economic growth. Export-dependent Malaysia is expected to struggle amid tighter trade conditions brought on by the recent escalation in US-China trade tensions. Morgan Stanley said in May that USD/MYR would rise to or above RM4.22 before the end of September.
The Malaysian ringgit is up around 2.5% against the US dollar for 2020 (in August) and is gaining favour from bank commentators such as HSBC due to the attraction of the carry trade - the ability to earn higher interest when holding MYR versus other major currencies.
This is a difficult question and the answer really depends on many factors. The best way to consider an exchange rate's relative value is to look at the rate's history.
For example, the following table looks at the change in the MYR to USD exchange rate to the present day for periods going back upto 10 years:
|04 Aug 2020 : 0.2369||1 Week|
|12 Jul 2020 : 0.2344||30 Days|
|13 May 2020 : 0.2309||90 Days|
|12 Aug 2019 : 0.2380||1 Year|
|13 Aug 2015 : 0.2489||5 Years|
|14 Aug 2010 : 0.3154||10 Years|
You can also read our full Foreign Exchange Guide to Malaysia.