USD/MYR likely to remain supported in near-term at 4.30–4.35 region, says Commerzbank

USD/MYR likely to remain supported in near-term at 4.30–4.35 region, says Commerzbank

Source: FxWire Pro - Commentary / 18 May 2017 02:56:16 Eastern Standard Time

The Malaysian ringgit has emerged as the best performing Asia currency on a quarter-to-date basis. It is up by 2.4 percent against the USD, followed by INR (1.2 percent) and PHP (0.9 percent).

Sentiment towards the MYR has improved considerably after Bank Negara Malaysia (BNM) liberalised rules to give investors more flexibility to hedge in onshore market, and implemented measures to boost onshore liquidity such as the mandatory repatriation of export proceeds.

Further supporting recent MYR strength is the stabilisation in commodity prices, residing domestic political risk and perceived undervaluation as compared to its fundamentals.

"If anything, we look for the USD/MYR to remain well supported in the near-term at the 4.30-4.35 region," Commerzbank commented in its latest research report.

© FxWire Pro 2018. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.