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Ringgit Prints Worst Levels Since Asian Financial Crisis After U.S. CPI

MYR

Better than forecast U.S. inflation data released Tuesday have generated tailwind for USD/MYR as onshore trading re-opened, with the pair printing best levels since the 1998 Asian financial crisis. It last deals +103 pips at MYR4.5175, with bulls targeting two back-to-back daily highs from Jan 1998 at MYR4.6100. Bears keep an eye on the Aug 26 low/50-DMA at MYR4.4663/46.

  • The ringgit hitting multi-year lows versus the greenback is not a sign of Malaysia experiencing an economic crisis, FinMin Zafrul said in a video message, reiterating that MYR performance should be assessed against a range of currencies.
  • Palm oil futures eased off in after-hour trade amid broader weakness in the commodity complex inspired by the risk-off reaction to hawkish Fed repricing in response to U.S. inflation report. This suggested that bullish sentiment from Tuesday's Kuala Lumpur session petered out after the most active contract jumped the most since Jul.
  • As the tabling of Budget 2023 is drawing nearer, the largest group of Malaysian palm growers has called for a review of the windfall profit levy and other measures to increase the competitiveness of the domestic palm oil industry. Their "wish list" comes amid intensified competition with top palm oil producer Indonesia, with both nations seeking to boost exports.
  • Bursa Malaysia Chair Omar and BNM Dep Gov Fraziali Ismail will speak at a conference in Kuala Lumpur today.
  • Reminder that Malaysia will observe a public holiday/market closure this Friday.

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