USDMYR Technical Analysis

The US Dollar was lower against the Ringgit on Thursday and is now trading at 4.3750. After several consecutive days of bullish moves, the USDMYR falls due to the increase in the interest rate for the Ringgit. The expectation was that the interest rate would remain unchanged at 1.75%, however, to the market’s surprise, it rose to 2%. This signals a certain tightening in the monetary policy of Malaysia, which has recently faced problems with inflation, especially in food. From a technical standpoint, USDMYR is strongly overbought, signalled by the Relative Strength Index reading at 80.25. The RSI shows signs of buyer exhaustion as it reads above 70. With interest rates rising and buyers tiring, the USDMYR could drop as low as 4.2400 in a few months.