Ringgit to strengthen towards 4.00 versus USD by end-2020, says RHB IB

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KUALA LUMPUR (Dec 9): RHB Investment Bank Bhd expects the ringgit (MYR) to strengthen further towards 4.00 versus the US Dollar (USD) by end-2020.

In an Economics View note today, the bank said Malaysia’s foreign exchange (FX) reserves remain unchanged at US$103.2 billion as at Nov 29 Nov.

It said In MYR terms, FX reserves fell RM0.1 billion to RM431.2 iillion in November.

“MYR remained fairly stable at RM4.18 for the month of November compared to the prior month. This came as the market balances weaker growth with more optimistic prospects of the trade war

“For 2020, we expect MYR to strengthen further towards 4.00 vs USD by end-2020.

“We think the weakness in the US economy amid the trade war, and the lapse of the support from the corporate tax cut would cause the US Fed to ease further, weakening the USD,” it said.