Malaysian Ringgit – USD is still in a downtrend
Strategy: The Malaysian Ringgit traded in a tight range against the US Dollar and ended at 3.2125 last week as some regional currency strength against the Greenback also lifted the local unit marginally. The USD/MYR’s recent swings are 3.3675 (high), 2.9335 (low), 3.2380 (high), 2.9510 (low), 3.3377 (high) and 3.1423 (low). The Malaysian Ringgit is bullish against the US Dollar in the short-to-medium term due to last week’s firmer MYR action. It was at a low point against the US Dollar at 3.3377 in Aug 2013 and saw a subsequent high of 3.1225. The MYR may remain range bound against the US Dollar but will have a spell of longer-term strength as the USD peaked at 3.3547 recently. It will range trade between 3.1600 and 3.2650 with a marginally firmer bias for the MYR this week.
by Maybank IB