The US Dollar rose against the Ringgit on Wednesday and hit its highest price since November 2021, trading at 4.2400. The bullish move was in part due to the release of CPI data for the US, which brought the highest reading in 41 years (8.5% real against 8.4% forecast). With this level of inflation, the Fed may feel pressure to tighten monetary policy even further to combat the effects of inflation. As employment is under control, this seems to be the natural path for the next steps of the monetary policy adopted by the Fed. From a technical point of view, it is possible for the USDMYR to make a pullback and fall to the 4.2300 level where it should find support. A breakout above 4.2450 level could pave the way for the price to rally to 4.2900 in a few weeks.
