Ringgit Extends Losses To Worst Levels In Two Years, BNM Meet Eyed This Week

Spot USD/MYR trades at MYR4.3775, up 110 pips on the day, as slightly higher U.S. Tsy yields keep the greenback buoyant. This is the strongest level printed by the pair in some two years.

• From a technical point of view, should the rate take out Apr 22, 2020 high of MYR4.4032, bulls could take aim at Mar 23, 2020 high of MYR4.4490. Meanwhile, the key near-term support has been defined at MYR4.3337, the low print from last Thursday.
• Worth flagging that PM Ismail Sabri will lead the Malaysian delegation to the special ASEAN-U.S. summit in Washington DC later this week.
• On the data front, Malaysia's industrial output will be published on Tuesday, with BoP current account balance & GDP coming up Friday.
• Bank Negara Malaysia will deliver its monetary policy decision on Wednesday. For the first time since the outbreak of the pandemic, analysts are divided as to whether policymakers will raise the Overnight Policy Rate. As things stand, 4 out of 12 economists surveyed by Bloomberg believe that Bank Negara will start its tightening cycle this week.