KUALA LUMPUR (Nov 10): AmBank Research expects the rinngit (MYR) to strengthen to 4.205 versus the US dollar (USD) for 2018’s full-year average with its end period at 3.950.
In a note today, AmBank group chief economist Anthony Dass said that in line with his expectation, Bank Negara Malaysia (BNM) left the overnight policy rate unchanged at 3.00%.
“More importantly, BNM cited the need to review the current accommodative policy on the back of the present growth momentum. We project the GDP at 5.7% for 2017.
“The hawkish tone by BNM supports our view for a 25-50 basis point rate hike in 2018.
“Hence our USD/MYR outlook for 2017 is 4.31–33 for the full-year average with our end period at 4.15–18 with intraday trade at 4.10-4.12.
“We expect the USD/MYR to strengthen to 4.205 for 2018’s full-year average with our end period at 3.950,” he said.