The US Dollar gained some ground against the Ringgit on Tuesday after returning to the support level at 4.2075 and is now trading at 4.2145. The recent upward movement is in line with the scenario of monetary policies adopted by the Fed, which is expected to raise interest rates to the USD again in May. The uptrend in the interest rate could cause an uptrend in the USDMYR as well. From a technical standpoint, USDMYR has just come back to retest support after breaking out of the downtrend line. If the price manages to break above 4.2260, it can move up to 4.2450 in a few days. Later, the release of Consumer Confidence data may give the Dollar even more strength. Still, Non-Farm Payrolls, scheduled for Friday, are expected to be the biggest determinant of the US Dollar’s direction over the next few weeks.
