The US Dollar gained ground against the Ringgit this Thursday and is now trading at 4.1910. Although the interest rate for the US Dollar remains unchanged, the FOMC minutes brought the information that the US may start the process of withdrawing fiscal stimulus this year. Soon after, during the press conference, Fed’s chairman, Jerome Powell, said that the tapering process is likely to start already at its next FOMC meeting, in November. According to the president, the US economic recovery is not yet complete, but on the right track and this has made the dollar appreciate. This macroeconomic scenario could cause the USDMYR to rise over the next few days to the 4.2400 level, where it may encounter some selling pressure. On the Ringgit side, the Consumer Price Index, due on Friday, could bring some volatility to the market. If the CPI comes in below expectations, it could cause the Ringgit to lose more value against the Dollar.
The US Dollar has made a major bullish move against the Singapore Dollar in recent days and is now trading at 1.3550. The Fed decided to keep the interest rate unchanged for the US Dollar, but the FOMC minutes brought important hints that the Fed will start the tapering process later this year. Jerome Powell, president of the US central bank, said that the process of withdrawing financial stimulus could begin as early as the next FOMC meeting in November, and this has caused the US Dollar to appreciate against the Singapore Dollar. From Singapore, the Consumer Price Index data, due later today, may give the SGD some direction. The latest readings have shown an increase in inflation in Singapore, reaching the highest levels since 2014. From a technical point of view, the USDSGD could rise to 1.3730 in a few days.
