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Ringgit Extends Losses, Malaysia To Relax Covid SOPs Wednesday

MYR

Spot USD/MYR keeps pushing higher, lodging fresh cycle highs. The rate changes hands +98 pips at MYR4.3348 after rejecting resistance from the 76.4% retracement of the 2020 - 2021 sell-off at MYR4.3420. A clearance of that technical hurdle would encourage bulls to target May 18, 2020 high of MYR4.3725. The initial support is located at Nov 26, 2021 high of MYR4.2490.

  • Malaysia's Finance Ministry brushed away worries about recent ringgit depreciation. It said that the country's strong external position and robust fundamentals will provide a cushion, while "the flexibility of the ringgit will continue to benefit the Malaysian economy". The Ministry added that the central bank will "contribute to the smooth operation of the domestic foreign exchange market by always ensuring adequate liquidity".
  • Worth noting that Malaysia's Health Minister Khairy said that officials will announce the relaxation of Covid-19 standard operating procedures this Wednesday.

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