USD/MYR: Testing key supports on softer USD – OCBC

OCBC’s strategists Sim Moh Siong and Christopher Wong observe USD/MYR nearing key support as markets price optimism over US–Iran negotiations and a softer US Dollar (USD). They stress that Malaysia’s growth momentum and higher commodity prices continue to underpin foreign inflows, with a stable Renminbi (RMB) anchoring Malaysian Ringgit (MYR). A falling wedge suggests possible bullish reversal, with focus on 3.90–3.92 support and a potential move toward 3.88.

Repricing geopolitics with firm fundamentals

"Markets are repricing quickly on optimism that US and Iran are considering a return to the negotiation table while USD continued to trade on a softer footing."

"Fundamentals have not shifted – growth momentum remains intact, alongside higher commodity prices – and these drivers should continue to underpin foreign inflows."

"Elsewhere, a stable RMB continues to provide an anchor for MYR."

"Falling wedge observed – typically associated with a bullish reversal."

"Some support coming in around 3.90-3.92 levels. A decisive break below may see MYR challenge 3.88."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)