Ringgit Expected to be Strong Until the End of 2023?


 After the US inflation data yesterday, the Malaysian Ringgit (RM) was seen to strengthen for a moment by rising to 4.6573 against the US Dollar. This morning, it was seen again to experience a decline to 4.6950.

However, this is a sign that the value of the ringgit will continue to strengthen against other Asian currencies. According to Reuters data, the Indonesian ringgit and rupiah have strengthened at the regional level.

The Ringgit rose to 4.663 and the Rupiah rose to 15475.000 against the US Dollar based on the last trading value.

Meanwhile, the Singapore dollar experienced a slight decline with a difference of 0.04 to 1.349 and the Thai Baht fell by 0.02 to 35.498.

According to Mohd Afzanizam, Bank Muamalat's Head of Economics and Social Finance, said the US inflation data published last Tuesday at 3.2% was lower than the last two months which had increased by 3.7%.

He explained further, it described the drop in inflation as a sign that the Fed has fulfilled its mandate to lower inflation following the current interest rate that has approached its peak.

Following that, the ringgit is expected to record an upward trend following the decline of the US Dollar.