The US Dollar was up 0.36% against the Ringgit on Thursday and is now trading at 4.3120. The upward movement comes after statements by Federal Reserve (FED) chairman, Mr. Jerome Powell who reaffirmed his commitment to lowering inflation in the US by any necessary means. He also said that the fight against inflation should last longer than initially thought, which could cause the interest rate for the USD to remain high throughout 2023. As interest rates remain high, investors usually seek safer assets to invest in, such as US bonds. Another aspect that causes the appreciation of the USD is that the USDMYR has dropped nearly 11% in the last 3 months from the highest peak and a bullish pullback is seen as a natural market reaction to the recent downward direction. From a technical point of view, USDMYR could move up to 4.3650 where it will find temporary resistance.
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© 2019 High Leverage FX - All Rights Reserved.