Malaysia: MYR seen appreciating in the longer term – UOB

In opinion of Strategists at UOB Group’s Quarterly Global Outlook, the ringgit is expected to regain buying interest in the next months.

Key Quotes

“Further gains of MYR from here may take on a more measured pace. We also noted a much reduced sensitivity of MYR to recovering oil prices in the last couple of months.”

“Key headwinds are a weak recovery post-MCO amid lingering unemployment together with potential political risks. Externally, the escalating US-China tensions curb enthusiasm in Asian assets as a whole, MYR included.”

“Taken together, our updated point forecasts for USD/MYR are 4.28 in 3Q20, 4.25 in 4Q20, 4.19 in 1Q21 and 4.15 in 2Q21.”