USD/MYR seen edging higher in H12020 – UOB

The Malaysian ringgit is expected to lose further ground in the first half of the year, according to the opinion by strategists at UOB Group’s Quarterly Global Outlook.

Key Quotes

“While the Malaysian economy may find some support from the fiscal and monetary stimulus already announced, the MYR continues to be weighed by the relentless deleveraging from EM and the sharp and sudden collapse in crude oil price.”

“As such, we see further weakness of MYR to 4.50 in 2Q20 and 4.55 in 3Q20. After which, a modest growth recovery in 2H20 as the COVID-19 outbreak shows signs of getting under control, USD/MYR should eventually ease lower to 4.45 in

4Q20 and 4.40 in 1Q21.”