The USDMYR has been flat this Tuesday due to a lack of economic agenda both from the US and from Malaysia. A flattening 7 day moving average for new covid cases and an acceleration in the rollout vaccination in Malaysia brings closer the possibility to the full reopening of the economy, which could be good for the Ringgit. As the FED keeps signalling that it will not change the interest rate, the US Dollar has its down trend still in place. Should the scenario remain unchanged, we could see a further down move in the USDMYR in the next few days.
The USDMYR is treading water amid an improvement in the battle against Covid in Malaysia and as investors keep digesting mixed economic data from the United States and mixed signals on the probability of a US interest rate hike. A flattening 7-day moving average of new Covid-19 cases in Malaysia, coupled with an acceleration in the vaccine rollout in the country, are boosting the prospects of a full reopening of its economy, which should, in turn, be supportive for the Ringgit. On the other hand, investors seem to still be counting on continued support from the Fed, despite Janet Yellen’s comments on the advantage of higher interest rates in the US. Should the scenario remain unchanged, we could see a further down move in the USDMYR in the next few days.
