At the beginning of the trading session, the US dollar rose 0.45% against the Ringgit but fell a little and now accumulates a gain of just 0.27% for the day. Due to the small pullback of USDMYR at the end of the day, the main sentiment is one of indecision. This is due to fears of the banking crisis that scares markets around the world and the fear regarding the possible bankruptcy of Credit Suisse. Earlier this morning, the Swiss National Bank (SNB) announced that it would help Credit Suisse if necessary as the bank is considered a very important player in the world banking scenario. With all this concern, many analysts believed that the European Central Bank (ECB) would not raise the interest rate for the Euro today. However, the ECB did increase the interest rate from 3% to 3.5%, signalling the central bank’s commitment to controlling inflation in Europe. All these elements, added to the interest rate decision for the USD scheduled for next Wednesday, the 22nd of March, adds uncertainty to the market and contributes to a scenario of indecision in the USDMYR. From a technical point of view, USDMYR starts to behave like a sideways channel, whose break to the top of 4.5300 may give room for more bullish movement. On the other hand, a break below 4.4630 could open the door for USDMYR to drop as low as 4.3650 in a few days.
