Key takeaways
HSBC predicts the Malaysian ringgit will weaken against the US dollar in 2027 but outperform several Southeast Asian currencies due to resilient domestic fundamentals. The bank expects the exchange rate to range between RM4.10 and RM4.20, supported by better positioning than peers facing higher oil costs or political uncertainty.
- HSBC forecasts the ringgit will trade between RM4.10 and RM4.20 against the US dollar in 2027.
- The ringgit is expected to outperform the Thai baht, Indonesian rupiah, and Philippine peso.
- North Asian currencies like the yuan and won may outperform the ringgit due to semiconductor exports.
Summarised automatically by AI from the original article by New Straits Times. AI can make mistakes, so check the original for details.
KUALA LUMPUR: The ringgit may weaken against the US dollar next year but could still outperform several major Asian currencies, according to HSBC.
The bank said resilient domestic fundamentals will help the ringgit cushion pressure from a stronger greenback and widening interest rate differentials.
HSBC expects the ringgit to trade between RM4.10 and RM4.20 against the US dollar in 2027, compared with its current range of RM4.05-RM4.10.
HSBC Asia FX Research head Joey Chew said the local currency will remain under pressure from sustained US dollar strength, interest rate differentials and potential political uncertainties.
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