KUALA LUMPUR: The ringgit is expected to remain volatile in the near term, with TA Securities maintaining a positive outlook for a stronger local currency in 2025, following its performance as Asia’s best-performing currency in 2024.
“In the short term, the ringgit is projected to move towards RM4.35 per US dollar, representing its immediate support level.
“Key factors such as a resilient domestic economic outlook, positive developments in tourism-related industries, stable commodity prices, and improved government policies are likely to underpin its strength,” TA said in a report.
“As a result, we reaffirm our forecast that the ringgit will average around RM4.10 against the US dollar in 2025, with a gradual strengthening trajectory.
“By the end of the year, we project the ringgit to appreciate further, reaching approximately RM3.90 per US dollar,” it added.
In December 2024, the ringgit closed slightly weaker at RM4.4718 against the greenback, marking a 0.6% month-on-month depreciation compared to RM4.446 per US dollar at the end of November 2024.
However, for the year, the ringgit emerged as Asia’s best-performing currency, appreciating by 2.7% against the US dollar, supported by stronger-than-expected economic growth.
TA noted that the ringgit's strength extended beyond the US dollar, showing significant appreciation against other regional currencies, including the South Korean won (14.81%), the Japanese yen (12.46%), and the Taiwanese dollar (8.83%), reflecting improved market sentiment throughout the year.
“On average, the ringgit traded at RM4.57 per US dollar in 2024, just slightly above our target of RM4.55,” it added.
