Ringgit Weakens In Early Trade, BNM-Speak Crosses

USD/MYR is ~0.3% firmer this morning, the pair is dealing above the 4.60 handle last printing at 4.6110/40.

• The pair continues to see-saw around the 4.60 handle, and has been unable to sustain a break of the handle this week.
• Technically the uptrend remains in place, bulls now target the high from 26 May at 4.6398. Bears first look to break the 20-Day EMA (4.5669) to turn the tide.
• Palm Oil futures are pressured down ~0.5% today and sitting a touch above the MYR3300 handle.
• A short time ago BNM Deputy Gov Fraziali noted that Malaysia is not entering recession, reaffirming the 2023 inflation forecast. Fraziali also said that the BNM is slightly accommodative and they don't see inflation "misbehaving".
• Earlier today Bank Negara Malaysia Gov. Shamsiah Yunus noted this morning that receding cost pressures are not feeding through to product prices as demand remains high. She also noted that the central bank's role is to ensure that the value of the currency doesn't swing too fast or too much.
• On the wires today we have the latest Foreign Reserves data, which is from May 31. The prior read was $114.7bn.