KUALA LUMPUR: The ringgit is expected to 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 forecast factors in an expected US Federal Reserve (Fed) interest rate hike in December, which could support the dollar towards year-end and into 2027.
She said the ringgit would likely remain at the upper end of its current range for the rest of 2026.
“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 at the launch of HSBC Malaysia’s enhanced FX on Mobile service here yesterday.
Chew said HSBC also expects Bank Negara Malaysia (BNM) to raise the overnight policy rate in the first quarter of 2027.
She ruled out a rate cut, citing elevated oil prices and potential El Nino-related inflationary pressures across Asia. – BERNAMA
