Forecasts for MYR to USD
Based on recent exchange rate forecasts from FX analysts, the Malaysian Ringgit (MYR) is expected to end 2023 with an exchange rate range of 4.20 to 4.30 per US dollar. This forecast is based on the belief that the US dollar has already reached its peak and is likely to experience a reversal in strength as the Federal Reserve's interest rate hike cycle comes to an end. Additionally, the fundamentals of the Malaysian Ringgit are considered to be strong, with the recovery of the tourism sector expected to support its strength. An increase in tourism could lead to a narrower deficit in Malaysia's services account, positively impacting the Ringgit.
It is worth noting that MYR to USD is currently trading at 0.2135, just above its 3-month average, indicating relative stability. Furthermore, the MYR can be influenced by oil price movements, and it is significant to mention that OIL to USD is currently 8.0% below its 3-month average. This suggests that oil prices, which affect Malaysia as one of the largest oil producers in Asia, are currently lower. The relatively cheaper Ringgit combined with Malaysia's lower cost of living has also attracted foreign interest, with increased enquiries for sale and rental properties being reported by Malaysian real estate agents.
In summary, while the MYR to USD exchange rate is currently within a stable range, the forecast indicates a potential strengthening of the Malaysian Ringgit in the future. Factors such as the expected reversal of the US dollar's strength, the recovery of the tourism sector, and the attractiveness of Malaysia as a more affordable alternative for foreigners could contribute to the MYR's continued strength in the long term.
