The decline for the USD accelerated in recent months due to record high coronavirus cases in the US, unlimited QE by the US Federal Reserve, near zero interest rate and the anticipated growth differentials between the US and the rest of the world. Another reason is the concerns that some oil-producing nations will no longer demand payment in USD.
The chief investment officer of currency manager A.G. Bisset believes the USD will plunge 36% against the Euro over the next year or so.
USD has been dropping against the Malaysian Ringgit in the last 3 months. Its current level of USD/MYR at 4.142 on the first day of September punched through its lower supporting trend line. At the current rate of falling, I expect the USD/MYR to go below 4.00 before end of this year.
USD/MYR is currently on its major wave 3 of C. Hopefully by the end of wave C, the ringgit can reach Rm2.50 to 1 USD.
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