The US Dollar maintains an intense downward movement against the Ringgit on Wednesday and is now trading at 4.5300. The USDMYR has already accumulated a 4.6% fall since November 4th and is already the biggest drop since January 2016. One of the elements that caused the fall was the release of the Producer Price Index (PPI) for the USD, which came below the expected (8% actual versus 8.3% forecast). The PPI measures inflation in the price of goods and services used by companies to produce their products. As this reading came in lower than expected, it shows signs of deflation, which may cause the Federal Reserve (FED) to ease the pace of raising interest rates in the future. This could cause the USD to lose value against its counterparts as it did against the MYR in the recent days. From a technical point of view, USDMYR was in an important historical resistance region and with extreme overbought signals. The downward move came as a natural reaction after an extensive bull move since 2020. Next support point is at 4.4450.
