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Ringgit Holds Steady Near Cycle Highs

MYR

Spot USD/MYR has been rangebound in early trade and last sits at MYR4.4225, a mere 10 pips higher on the day. Stabilisation after the hawkish Fed repricing earlier this week allows the rate to get some reprieve.

  • Renewed gains past yesterday's high of MYR4.4255 would shift focus to MYR4.4490, which capped gains on Mar 23, 2020. On the flip side, bears need a retreat past May 31 low of MYR4.3643 to regain poise.
  • Tensions are simmering within the ruling coalition, with local press suggesting that Bersatu leaders are plotting to initiate cooperation with some opposition parties to challenge PM Ismail Sabri. Meanwhile, the Premier still hasn't met with Plantation Industries and Commodities Minister Zuraida to discuss her resignation after she left Bersatu.
  • Malaysia's official reserves fell to $112.5bn in April, falling by the most since June 2018, BNM data showed. The next bi-weekly report on FX reserves is due next Wednesday.
  • Malaysia's Department of Statistics will publish trade data for the month of May on Friday.

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