Ringgit Keeps Hitting New 24-Year Lows, Despite Friday's Jump in Palm Oil

Spot USD/MYR ripped through the MYR4.7 figure last Friday and has extended gains this morning to last trade +30 pips at MYR4.7078. Topside technical focus falls on the all-time high of MYR4.8850, while bears set their sights on Oct 6 low of MYR4.6270.

• Political uncertainty will increase the ringgit's vulnerability in the coming weeks, after PM Ismail Sabri opted to call a snap election before the Dewan Rakyat could pass Budget 2023.
• Palm oil futures rallied last Friday, with the most active contract testing its 50-DMA for the first time since September 1. High-frequency data on Malaysian shipments in the first 15 days of the months were mixed, as Intertek reported a 3.96% M/M decline and AmSpec flagged a 1.9% increase. Malaysia kept crude palm oil export tax at 8%, despite Indonesia's recent decision to extend its export levy waiver.
• It is expected that the value of goods exported from Malaysia in September increased 33.0% Y/Y, while monthly trade surplus widened to MYR17.30bn from 16.92bn recorded in the previous month, with latest data coming up Wednesday. Later this week, Friday will see the release of CPI inflation, which is expected to have slowed to +4.6% Y/Y in September from +4.7% prior.
• Elsewhere, Malaysia's chief statistician will hold a briefing on national household income and spending at 10:00am local time.