Hong Leong Bank Expects Ringgit To Have Enough Legs To Continue Uptrend
KUALA LUMPUR, Nov 12 (Bernama) -- Hong Leong Bank Bhd (HLB) believes the ringgit has sufficient fundamental strength to continue its uptrend after the local note opened at 4.12 against the US dollar on Wednesday, its strongest level since Sept 30, 2024.
HLB managing director of global markets Hor Kwok Wai said the 4.12 level is a direct reflection of Malaysia’s significantly improved economic standing.
“Our bullish outlook is reinforced by the favourable catalysts from the de-escalation of US-Malaysia trade tensions and the successful conclusion of the ASEAN Summit to the continued commitment to fiscal discipline,” he said in a statement today.
He said external confidence is soaring, driven primarily by the recent reciprocal trade agreement signed with the United States, which has successfully de-escalated bilateral trade tensions.
“This positive sentiment, coupled with the successful conclusion of the ASEAN Summit hosted in Malaysia, is attracting robust foreign direct investment (FDI) and portfolio inflows, particularly into Malaysian bond and equity markets.
“This stability is expected to contribute to a slower pace of foreign reserves accumulation by the central bank,” he added.
Hor said the domestic narrative is further supported by a weaker US dollar outlook, following softer weekly private survey labour data overnight which reinforced expectations of continued Federal Reserve policy easing leading to a crucial narrowing of the yield differential between the US and Malaysia.
“Domestically, confidence is further boosted by Prime Minister Datuk Seri Anwar Ibrahim’s recent comment, suggesting that the country’s 2025 gross domestic product (GDP) growth could exceed the official forecast range of 4.0-4.8 per cent, cementing a robust economic trajectory,” he said.
Meanwhile, he also emphasised that the upward momentum serves as market validation of Malaysia’s ongoing commitment to fiscal sustainability, anchored by the recently tabled Budget 2026.
The budget reinforces disciplined economic management by targeting a fiscal deficit of 3.5 per cent of GDP for 2026.
“The bank maintains a bullish outlook on the ringgit, driven by the previously mentioned catalysts, which are further supported by Malaysia’s robust fundamentals and resilient growth prospects.
“Given that the 2025 real GDP growth is anticipated to reach the upper range of official forecasts, the ringgit is projected to see steady appreciation, aiming for 4.05 by mid-2026,” he said.
-- BERNAMA
