USDMYR Technical Analysis

The US Dollar was higher against the Ringgit on Thursday and is now trading at 4.4350. The recent bullish move in the US Dollar comes after the release of data from the Consumer Price Index, which measures inflation in the US. Despite experts saying that the worst of inflation is over, it continues to rise insistently. The CPI reading came in higher than expected (9.1% actual versus 8.8% forecast). Inflation of 9.1% is the highest since 1981 and should make room for more severe measures by the Fed, which should accelerate the increase in interest rates in the US. If the interest rate rises too much, this will cause countries to start selling their local currencies to buy more dollars and then buy US government bonds. From a technical standpoint, USDMYR is testing an important region of resistance on the Daily chart.