The Dollar continues to lose ground against Ringgit for the third day in a row and is now trading at 4.1630. The Core Consumer Price Index data for the Dollar may give the direction the Fed needs to start the tapering process announced for November. If the Core CPI reading comes in higher than expected, it could mean higher inflation and therefore a possible tightening of US monetary policy, which could make the USD appreciate in the coming days. From a technical point of view, the USDMYR is approaching a support region on the daily chart at 4.1570 and a break above the 4.1780 level could pave the way for the price to rise to 4.2400.
Although the Dollar continues to gain traction against Indian Rupee, it is starting to show signs of exhaustion after touching a key resistance region and is now trading at 75.4480. Yesterday’s high was the highest price since July 2020. Consumer Price Index data for India came in lower than expected on Tuesday, which helped to strengthen the Dollar somewhat. The India Wholesale Price Index (WPI) data will show the real inflation situation in India, which has been at alarming levels, even higher than those of the 2008 crisis. From a technical point of view the USDINR may make a small retraction to the level of 74.80 before gathering strength to break the resistance at 75,55 and resume bull movement. If the price manages to break above 75.80, it could rise to the level of 77.0080, the highest price ever.
