Ringgit Weakens As Palm Oil Stays Cheap

Spot USD/MYR has added 48 pips and last deals at MYR4.6155, after closing above resistance from two 1998 intraday highs of MYR4.6100 on Tuesday. Broad-based demand for the greenback underpins gains for the pair, sending it to a new multi-decade high of MYR4.6165 this morning.

• Topside focus now falls on MYR4.8850, a record high printed in the midst of the 1998 Asian financial crisis. Bears look for a dip towards the 50-DMA, which crosses at MYR4.4899.
• Palm oil hovered above its cyclical lows Tuesday as concerns over the global growth slowdown still weigh on the edible oil. The prospect of ample supply from Malaysia and Indonesia helps keep prices in check.
• The World Bank said the upcoming 2023 budget will likely focus on people-centric spending as a general election draws nearer, but won't be too expansive amid limited fiscal space.
• Tensions are brewing in Malaysia's ruling coalition as UMNO leaders lashed out at ex-PM Muhyiddin of Bersatu for claiming that the government has been slow in implementing his National Recovery Council's recommendations. Note that UMNO's top brass will meet Friday to discuss the potential timing of the next general election, which puts pressure on Muhyiddin to make his party relevant as an autonomous entity.