USD/MYR has opened sharply lower in the first part of Thursday trade. The pair hit a low of 4.7130 in early dealings, but we sit slightly higher now, last near 4.7170. This a MYR gain of just over 0.30%. It also puts USD/MYR back to fresh lows going back to the start of Feb.
- The next focus point on the downside could be 4.7065, which is the 100-day EMA. Yesterday's intra-day high ran out of steam around the 20-day EMA (currently near 4.7485).
- We saw fresh rhetoric from BNM late yesterday, with the central bank stating it is committed to ensuring ringgit stability, while also increasing monitoring of export proceeds into the local currency (BBG).
- In addition, and outside broader USD softness, positives for the ringgit include the recent spike in palm oil prices. The benchmark has risen to 7 month highs, with supply fears a factor (see this BBG link).
- Later on today, the BNM policy decision is seen on hold, but financial stability issues, particularly FX are likely to be a focus point (see our full preview here).