Ringgit to weaken to 4.15 level against US dollar
The country is also benefiting from the trade diversion because of the US-China trade war. Rohit Garg, Bank of America Merrill Lynch director
KUALA LUMPUR: The ringgit is expected to weaken to 4.1500 against the US dollar by year-end as the local note is vulnerable to China’s economic growth, said an analyst.
“However, Malaysia’s steady exports is expected to reduce the ringgit’s weakness as we are the only country that is not facing much of a downward pressure on exports.
“The country is also benefiting from the trade diversion because of the US-China trade war,” said Bank of America Merrill Lynch director Rohit Garg during a panel discussion held on the sidelines of the ‘Palm and Lauric Oils Price Outlook Conference and Exhibition 2019 (POC 2019)’ yesterday.
In fact, he said, this was evident from Malaysia’s electric and electronics exports which has been performing very well.
“For Malaysia, things have actually turned out to be better than what I really expected. I do not really expect much weakness in the ringgit,” he added.
Meanwhile, Macquarie Commodities Trading (Shanghai) Co Ltd associate director Ryan Chen said the ringgit would likely trade between 4.06 and 4.10 against the greenback by year-end with Brent crude oil prices expected to trade around US$65 per barrel.
Another analyst said the US dollar was set to weaken in the second half of 2019 with the Federal Reserve anticipated to pause interest rate hikes which would help emerging market currencies including the ringgit to recover lost ground.
The three-day POC 2019 themed, ‘Managed Uncertainties, Harvest Global Opportunities’, is organised by Bursa Malaysia Derivatives Bhd (BMD) and attended by prominent local and international industry experts who would share their analysis and assessment on the development and challenges impacting the price outlook for palm oil and lauric oils in 2019.
BMD operates the world benchmark for crude palm oil futures contract. — Bernama