USD/MYR Outlook:
Bearish, as the exchange rate is below its recent average and near its recent lows.
Key drivers:
• Rate gap: The Federal Reserve's decision to hold interest rates steady has weakened the U.S. Dollar, impacting the exchange rate.
• Risk/commodities: Oil prices are rising, supporting the MYR as Malaysia's economy benefits from stronger energy revenues.
• One macro factor: Malaysia's economic growth of 5.2% in the last quarter is helping reinforce the value of the MYR against the USD.
Range:
The USD/MYR is likely to drift lower within its recent 3-month range.
What could change it:
• Upside risk: A stronger-than-expected U.S. jobs report could boost the dollar’s strength.
• Downside risk: Continued geopolitical tensions and further U.S. asset sell-offs could weigh on the dollar.