The Malaysian ringgit is expected to face continued near-term headwinds driven by external uncertainties and volatile portfolio flows, according to a new assessment from Standard Chartered.
Despite the short-term pressure, the bank maintains that the currency’s medium-term prospects remain positive, underpinned by stable fundamentals and improving economic conditions in the region.
This outlook comes as the ringgit has shown signs of modest stabilization, opening slightly firmer against the US dollar in recent sessions.
The currency had previously struggled with weakness, but a shift in market sentiment has helped reverse some of the downward pressure.
Investors are closely monitoring capital flow dynamics, which remain sensitive to global risk appetite and US dollar strength.
Standard Chartered’s analysis highlights the dual nature of the ringgit’s current trajectory: short-term volatility versus longer-term resilience.