MBSB Lifts Ringgit Forecast to Average RM4.25 For The Year Against US Dollar

KUALA LUMPUR, Nov 3 (Bernama) -- MBSB Investment Bank Bhd has revised its base case for the ringgit, expecting it to strengthen further against the US dollar and projecting an average forecast for the year to RM4.25 from RM4.30 previously.

It said in a note today that the primary catalyst for this sustained appreciation bias is the expected narrowing of the US-Malaysia interest rate differential.

It said the ringgit appreciated by 0.3 per cent month-on-month in October 2025, closing the month at RM4.189 versus RM4.207 at end-September 2025.

MBSB said that in the first 10 months of this year, the ringgit gained by 6.8 per cent year-to-date against the US dollar, as last month’s performance was partly driven by the expectation for the Federal Reserve rate cut in the October 2025 meeting, added with the positive sentiment from the domestic economic performance.

“The ringgit traded within the range of RM4.1885–RM4.231 last month, with sustained downward pressure through the third week of October 2025, with the local currency briefly testing resistance above the RM4.23 threshold on two occasions.

“This softness peaked on Oct 14, when the USD/MYR closed at RM4.231, its lowest point since late August 2025.

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“Critically, the final days of the month saw a significant momentum shift, resulting in the ringgit reversing its trajectory and closing the month stronger against the US dollar,” it said.

Domestically, recent data continued to indicate a robust economic activity, consistent with the release of the robust third quarter 2025 gross domestic product growth and the stronger-than-expected September 2025 external trade figure, said MBSB.

-- BERNAMA