UOB Sees Malaysian Ringgit At RM4.22 Against US Dollar In 2019

KUALA LUMPUR, Nov 22 (Bernama) -- United Overseas Bank (Malaysia) Bhd (UOB Malaysia) is expecting the Malaysian ringgit to hit RM4.22 against the US dollar next year. Senior Economist Julia Goh said the strengthening dollar, movement of the renminbi and oil prices would be the main factors affecting the ringgit. "The ringgit has not weakened as significantly as other currencies. I think one of the underlying factors is that we still maintain a current surplus. "Having said that, the dominant factor driving it (the currency) is still external factors," Goh said at the bank’s 2019 Economic Outlook seminar. She said OUB Malaysia was also monitoring the United States’ (US) interest rate hikes, with the next round of increase expected in December, and three more expected in 2019 that would boost the dollar’s presence. "We expect the pressure on the ringgit to materialise at a gradual pace," Goh said. The bank was bullish over oil prices, predicting it to hover between US$75 - US$80 per barrel, but noted that global risks might affect prices, including the fact that the US is currently the world’s largest oil producer. As for the impact of oil prices on the government’s revenue, Goh said there may be some risks in 2019. "I think for 2018, dividend from Petronas is already locked in because it is based on this year’s oil prices which is at an average of US$72 per barrel. "But the 30 per cent special dividend is at risk due to volatile oil prices and a possibly weaker trend next year,” she said. Under the 2019 Budget, the government said Petronas would pay the government RM24 billion in regular dividend and an additional RM30 billion in a special one-off dividend next year. -- BERNAMA