The US Dollar dropped against the Ringgit on Monday and is now trading at 4.3730. The downward movement is due to good numbers coming from Malaysia, which has shown a good economic recovery from the COVID crisis, with a falling unemployment rate in recent months. Inflation in Malaysia has also been high (the last reading was 4% in the month of November), but it is still lower than inflation in the US, which last read 7.1% in November. All these numbers point to a favourable economic situation in Malaysia, which should encourage the entry of foreign capital into the country, causing the USDMYR to fall over the next few months. From a technical point of view, if USDMYR breaks down from the 4.3650 level, it may drop as low as 4.2400 before finding some more important support.
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© 2019 High Leverage FX - All Rights Reserved.