“Slowing global trade as well as Chinese and Malaysian growth due to Trump tariffs could force Bank Negara Malaysia to cut rates late in 2025,” said David Forrester, a senior strategist at Credit Agricole in Singapore.
Asia’s top performing currency last year is set for a bout of weakness as traders brace for a higher risk of an interest rate-cut amid trade tensions.
After being largely range-bound this year, the Malaysian ringgit may fall to 4.6 per dollar by end-June, according to analysts at Credit Agricole and Malayan Banking (Maybank). The currency strengthened 0.3% to 4.4350 in early trading Monday, paring last week’s loss.
