MYR/HKD Outlook:
Slightly positive, but likely to move sideways due to the rate being above its recent average while lacking a clear driver.
Key drivers:
• Rate gap: The Malaysian central bank's reduced interest rates have weakened the US Dollar, indirectly supporting the MYR against the HKD.
• Risk/commodities: With oil prices holding steady above average, the MYR is benefiting through increased export revenues, reflecting in its strengthened value.
• One macro factor: Malaysia's 5.2% GDP growth showcases robust economic recovery, indicating a resilient MYR.
Range:
The MYR/HKD exchange rate is likely to hold steady in the recent range, with possible fluctuations between the extremes.
What could change it:
• Upside risk: A significant increase in oil prices could further boost the MYR.
• Downside risk: Any new pressure on global markets affecting the HKD could lead to downward movement in rates.