USD/MYR to skid towards 4.05 by year-end as ringgit is significantly undervalued – ANZ
|The Malaysian ringgit has been range-bound between 4.10 and 4.15 per US dollar. In the view of economists at ANZ bank, MYR is considerably undervalued and will likely strengthen, supported by the current account surplus and improvement in investor sentiment as the vaccine roll-out picks up pace.
Solid current account surplus cushions the ringgit against volatile portfolio flows
“Our optimism on the current account surplus in the coming months, alongside a potential revival in equity-related inflows as the vaccination drive makes progress, bodes well for the ringgit.”
“Our fair value estimates indicate that the ringgit is significantly undervalued and is likely to appreciate against the US dollar.”
“We forecast USD/MYR at 4.05 at the end of 2021. However, we acknowledge the possibility of near-term volatility arising from developments in US monetary policy.”
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