Ringgit Rally Still Supported By Global Backdrop – CIMB Investment

KUALA LUMPUR, Nov 14 (Bernama) -- The ringgit is expected to remain well supported by the global backdrop, as seasonal patterns suggest the local note’s gains still have legs in December before a pause, according to CIMB Investment Bank Bhd.

In a note, the investment bank said a recurring pattern of ringgit strength in November and December has coincided with year-end export conversions, dividend repatriation, portfolio rebalancing and thinner US dollar trading.

It said this may extend the ringgit's recent rally before diminishing in January–February next year.

“While the psychological level of 4.00 sits within the crosshairs of possibility – given a constructive macro backdrop, a weaker US dollar and the ringgit's momentum-driven propensity – we view a fair value of 4.10 - 4.20 as the central tendency.

“The global backdrop remains favourable to the ringgit, and receding risks related to tariffs and trade, as well as inroads towards ending the United States government shutdown, have trimmed the US dollar’s safe-haven appeal,” it said.

Earlier today, Bank Negara Malaysia (BNM) said the ringgit remained broadly stable against the US dollar, with a marginal appreciation of 0.05 per cent in the third quarter (3Q) of 2025 and a year-to-date appreciation of 8.2 per cent as at Nov 12, 2025.

BNM Governor Datuk Seri Abdul Rasheed Ghaffour said both external and domestic factors drove the ringgit’s movement.

On the external front, the US Federal Reserve’s monetary policy easing in September, coupled with expectations of further rate cuts amid growing concerns about the US economy’s outlook, has supported the ringgit during the quarter.

“In addition, the announcement of trade agreements between the US and several of its trading partners, including Malaysia, has helped ease tariff-related uncertainties and improve sentiment, further supporting the ringgit’s performance,” he added.

-- BERNAMA