Myanmar: USD/MMK to rise to 1,550 by the end of the year – ANZ

The Myanmar kyat has recorded a year-to-date rise of 3.6% against the USD and 8.6% against the EUR. A couple of factors pose risks to the kyat’s further advance and could drive it potentially weaker into year-end, analysts at ANZ Research brief. USD/MMK is trading at 1,403.96.

Key quotes

“Slower growth in Myanmar’s trading partners will inevitably weigh on its export performance, and hence on its currency.” 

“The second key risk is from a COVID-19 outbreak in the country. While there have been no confirmed cases so far, the government has taken pre-emptive steps.”

“We forecast USD/MMK to rise to 1,550 by the end of the year.”