# Underlying issue affecting ringgit is perception of interest rate differentials – MARC Ratings | Scoop

> MARC Ratings says interest rate differentials are the main factor weighing on the ringgit, as portfolio funds move toward higher-yielding markets. Malaysia's policy rate is 3.00%, and it is one of only three countries in its 32-country sample not expected to cut rates over the next 12 months.

- Date: 2024-03-18 · published 2024-03-18T12:00:00.000Z
- Category: macro · region Malaysia · magnitude low
- Page: https://feedsoft.ai/events/31483-underlying-issue-affecting-ringgit-is-perception-of-interest-rate-differentials
- Commodities: [Malaysian Ringgit (MYR per USD)](https://feedsoft.ai/c/USDMYR.md)

## Why it matters

Wider rate gaps with the US keep capital flowing out of Malaysia and the ringgit weak, which raises the local cost of dollar-priced feed ingredients.

## Read by commodity

- USDMYR: bullish ▲

## Sources

- scoop.my: https://www.scoop.my/opinion-analysis/179098/underlying-issue-affecting-ringgit-is-perception-of-interest-rate-differentials-marc-ratings/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.