Malaysian Ringgit Gains Seen Limited on June 26 Despite Central Bank Support

According to Mitsubishi UFJ Bank on June 26, the Malaysian ringgit may face limited upside against the U.S. dollar despite domestic policy support. Senior FX analyst Lloyd Chan noted that while the central bank's encouragement for government-linked companies to repatriate overseas earnings has supported the ringgit, sustained expectations of higher U.S. interest rates continue to underpin the dollar. Chan highlighted that the current environment differs from 2024, when markets anticipated Fed rate cuts. Today, market expectations have shifted toward prolonged higher U.S. rates, creating persistent external headwinds for the ringgit.
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