OCBC strategists Sim Moh Siong and Christopher Wong observe that USD/MYR is approaching key support amid market price optimism amid US-Iran negotiations and weakening US dollar (USD). They emphasize that Malaysia’s growth momentum and higher commodity prices continue to underpin foreign currency inflows, with a stable renminbi (RMB) exchange rate anchoring the Malaysian ringgit (MYR). The falling wedge suggests a possible reversal of the uptrend, with emphasis on the 3.90-3.92 support and a potential move towards 3.88.
Reevaluating geopolitics based on solid foundations
“Markets are rapidly re-pricing on optimism that the United States and Iran are considering returning to the negotiating table, while US dollar trading continues to be on softer footing.”
“The fundamentals have not changed – growth momentum remains intact, along with higher commodity prices – and these factors should continue to support foreign capital inflows.”
“Elsewhere, a stable RMB continues to anchor the MYR.”
“A falling wedge was observed – usually associated with a bullish reversal.”
“Some support will emerge around the 3.90-3.92 levels. A decisive break below could challenge the MYR at 3.88.”
(This article was created with the aid of an artificial intelligence tool and has been reviewed by an editor.)
