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Malaysian ringgit seen to reach 4.00 against USD by end of 2020

KUALA LUMPUR
2020-01-09 11:27

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KUALA LUMPUR, Jan. 9 (Xinhua) -- Malaysian ringgit could reach 4.00 against the U.S. dollar by end of this year from 4.11 in the first quarter on weaker U.S. dollars, stronger Chinese yuan, favorable domestic macro fundamentals and firm oil prices, a report said Thursday.

AmBank Research said in a report that these positive factors plus improved capital flows into the region, point to a more favorable ringgit outlook.

Still, the ringgit will be driven by several events such as FTSE Russell retaining Malaysia in the World Government Bond Index during its next half-yearly review in March 2020, global rating agencies ratings, political transition and geopolitical tension.

Besides, the Federal Reserve ending the easing rate cycle may provide room for Malaysian Central Bank to institute a rate cut in the Overnight Policy Rate.

Despite external headwinds and domestic issues, the ringgit closed stronger in 2019, up 1.1 percent to 4.09 against the U.S. dollar, according to the report.

During the year, the ringgit traded on a wide range with a high and low of 4.06 and 4.22. For the full year of 2019, the ringgit averaged at 4.14 with the end period at 4.09.
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