The US Dollar is flat against the Ringgit and is trading at 4.1880 this Wednesday. The main reason for the sentiment of indecision is the possible change in the interest for the US Dollar, to be released later. As US inflation is the highest in 39 years, it is likely that the Fed will decide to raise interest rates to contain the inflationary scenario. At the moment the interest rate is at 0.25% and a rise could raise it to 0.5%. From a technical point of view, if USDMYR manages to break above 4.1950, it could move up to 4.2450 in a few days. An interest rate hike could accelerate this scenario. On the other hand, a breakout below 4.1720 could pave the way for the USDMYR to fall to the 4.1400 in a few days. This scenario is more likely if the interest rate remains unchanged.
