USD/MYR: Ringgit strength seen extending lower – MUFG

💡 DMK Insight

USD/MYR is on a downward trajectory, and here’s why that matters for traders: MUFG’s forecast of a target at 3.7000 by the end of 2026 signals a potential long-term trend shift for the Malaysian Ringgit. This could be driven by a combination of factors, including improving economic fundamentals in Malaysia and a possible weakening of the USD as global interest rates stabilize. Traders should keep an eye on the broader economic indicators, particularly inflation rates and central bank policies, as these will influence currency strength. If the Ringgit continues to appreciate, it could impact related markets, such as commodities and emerging market equities, which often correlate with currency movements. But don’t overlook the risks—if the USD strengthens unexpectedly due to geopolitical tensions or economic data surprises, it could derail this forecast. Watch for key levels around 4.0000 for USD/MYR, as breaking below this could trigger further selling pressure. Keep an eye on the monthly charts for signs of sustained momentum in the Ringgit’s favor, and be prepared for volatility as market sentiment shifts.