KUALA LUMPUR: The ringgit could trade between 4.10 and 4.20 against the US dollar in 2027, compared with its current range of 4.05 to 4.10, according to HSBC Global Investment Research.
Its head of Asia FX research Joey Chew said the outlook takes into account expectations that the United States (US) Federal Reserve (Fed) would raise interest rates in December.
"The move could provide some support for the dollar towards the end of the year and into next year,” she said during HSBC Malaysia’s unveiling of its newly enhanced FX on Mobile capability here today.
For the remainder of this year, Chew said the local note is expected to trade at the upper end of its current range.
"The upcoming US midterm elections could also influence the broader US dollar outlook, although its impact on the ringgit would be more indirect,” she said.
On the domestic monetary policy outlook, Chew said HSBC’s economics team expects Bank Negara Malaysia (BNM) to raise the overnight policy rate in the first quarter of 2027.
Asked whether relatively moderate inflation and favourable domestic economic conditions would give BNM room to lower interest rates despite potential pressure on the ringgit, Chew ruled out the possibility of a rate cut.
"As long as oil prices remain elevated, inflation remains a concern and there are potential El Nino-related inflationary pressures across Asia, I do not think any central bank, including Malaysia, despite having relatively controlled inflation, has the luxury of considering rate cuts,” she said.
Meanwhile, HSBC’s enhanced FX on mobile feature includes an FX Watchlist for monitoring selected currencies, FX Charts for viewing historical exchange rate movements and FX Rate Alerts for notifications when currencies reach specified rates.
Customers can also convert currencies through the application at any time using live exchange rates, while HSBC Premier customers can transfer funds to more than 50 countries and territories through Global Money Transfers without incurring transfer fees. - Bernama
