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*USD/MYR Back Sub 50-day EMA, Amid Stepped Up Government Coordination

MYR

*Correct 100-day EMA level
USD/MYR has tracked sharply lower in the first part of Monday trade. We sit at 4.7225 in recent dealings, after hitting fresh lows of 4.7185 earlier. This puts the pair back sub the 50-day EMA (near 4.7310), while the 100-day sits further south, close to 4.7050. Overall, this puts the pair back to early Feb levels.

  • Comments from Malaysia's Financial Markets Committee (FMC), crossed late on Friday local time. The FMC which was establish in 2016 and comprises the central bank, along with representatives from financial institutions, corporates, and other market participants.
  • The body noted that coordination between the government and central bank had encouraged repatriation inflows, particularly from state-owned firms, in terms of offshore earnings (see this BBG link for more details).
  • Such a backdrop may be lending more support to MYR today. The ringgit is comfortably the best performer in the EM Asia FX space so far today, up around 0.50%.
  • The main event risk this week is the BNM decision on Thursday, with the central bank widely seen on hold.

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