Technology · Malaysia Bureau
Ringgit poised for recovery as oil and AI demand strengthen outlook
Despite underperforming regional peers with a 1.2% decline in September, the Malaysian ringgit is expected to appreciate to around 4.03 per dollar by year-end, supported by rising commodity demand and technology sector growth.
LSN Malaysia ·
The ringgit's recent weakness masks a more optimistic medium-term outlook, according to market strategists who point to structural support from elevated oil prices and accelerating artificial intelligence adoption across the region.
The currency has lagged behind other Asian counterparts this month, losing 1.2% of its value as broader emerging market pressures weighed on regional assets. However, analysts expect this trend to reverse as demand for crude oil and technology-related investments strengthens Malaysia's economic fundamentals and current account position.
The anticipated appreciation to 4.03 per dollar represents a meaningful recovery from current levels, reflecting confidence that Malaysia's commodity exports and growing role in the global AI supply chain will provide sustained upward momentum through the final quarter of the year.
Market observers note that the ringgit's performance will likely track movements in crude oil prices, given Malaysia's status as a petroleum producer, while inflows tied to artificial intelligence development and semiconductor-related investments should provide additional support for the currency.