MIDF: Ringgit likely appreciates further in 2H24 on US rate cut optimism

KUALA LUMPUR: MIDF Amanah Investment Bank Bhd foresees that the ringgit would appreciate further in the second half of 2024 (2H 2024) as it has strengthened beyond the RM4.60 mark, potentially ending the year at RM4.43 (end-2023: RM4.59).

The bank said the return of foreign funds into emerging markets, driven by an anticipated reduction in the Federal Reserve’s (Fed) federal funds rate and narrowing interest differentials, is expected to bolster regional currencies, including the ringgit.