MYR/HKD Outlook:
Slightly positive, but likely to move sideways, with the rate above its recent average and lacking a clear driver.
Key drivers:
• Rate gap: The Malaysian central bank's current policies provide a more favorable rate environment than those from the Hong Kong Monetary Authority.
• Risk/commodities: Current oil prices are above average, which can strengthen the MYR due to its impact on Malaysia's export revenue.
• One macro factor: Malaysia's GDP growth of 5.2% in the last quarter signals economic resilience, supporting MYR strength.
Range:
The MYR/HKD is likely to hold its ground within the established range, drifting but not testing extremes in the near term.
What could change it:
• Upside risk: A further decline in US interest rates might bolster MYR against HKD.
• Downside risk: Increased volatility in global markets could pressure the HKD, challenging the MYR's position.
