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Dollar Weakness, Firmer Palm Oil Bring  Some Reprieve To Ringgit

MYR

Spot USD/MYR has shed 35 pips in early trade and last deals at MYR4.4850, in the wake of overnight greenback sales.

  • From a technical standpoint, bearish focus remains on the 50-DMA, which today intersects at MYR4.4400. Bulls look for renewed gains towards Jan 4, 2017 high of MYR4.5002.
  • Palm oil futures extended gains in after-hours trade. The contract for November delivery showed above its 50-DMA for the first time since dipping through that moving average in mid-Jun.
  • Ex-PM Najib lost his final appeal in a trial related to the 1MDB scandal and will serve a 12-year prison sentence. The UMNO politician will be prohibited from running in the next general election that must be held by Sep 2023 if he is not granted royal pardon.
  • Reminder that we will get an update on Malaysia's CPI inflation this Friday.

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