The US Dollar remains sideways against the Ringgit on Thursday and is now trading at 4.1835. The Minutes of the FOMC meeting brought a more severe stance by most participants, who believe that a more hawkish stance is more appropriate for the moment. It seems that the Fed is ready to start raising interest rates at the next meeting, in March. It was also said that the current moment of inflation (the highest in the last 40 years) calls for more aggressive actions on the part of the FED. This tougher stance stems from the fear some FOMC members have expressed about financial stability. Such a shift to a more hawkish stance could cause the USD to appreciate over the next few days in anticipation of the interest rate hike. From a technical point of view, USDMYR needs to be able to break above 4.20 for it to be characterized as an ignition move that could take the price up to 4.2400 in a few days.
