The US dollar gained strength against the Malaysian ringgit this morning, trading at 4.1200. This movement was supported by the Central Bank’s decision to keep the Interest Rate unchanged, at 1.75%, the lowest level ever. Economists say the economic recovery is on track and lowering interest rates will help the economy to grow again. The Central Bank’s decision is in line with the perspective of the rest of the world to keep interest rates low to strengthen local economies, promote employment and fight the negative effects of the Covid pandemic.
The interest rate decision also had an impact on the Singapore dollar price against the Ringgit, which closed the day up 0.42%, being traded at 3.0912. CNY also gained ground against MYR, up 0.47% today, trading at 0.6376.
With the decision to keep the interest rate unchanged, Ringgit may continue to lose value against its counterparties over the next few days. From a technical point of view, if the price manages to break the 4.1250 level, USDMYR may seek the 4.1500 price level by the end of May.
