As of 21st Sept, MYR have been rallying to 4.27 / USD. Most of us have expected the rally to be over after MYR seems to ease off at 4.19 on Friday after reaching 4.3x level just a week ago. Well, looks like it won't stop for now. Most of us will be wondering how far it will go this time around? Will it reach 4.5 or to certain extent 5 ? Or perhaps back to 4.0 level and return to 3.8 - 3.6 level. Watch it closely if it break the 4.3x barrier and moves to 4.4.
From my perspective, it is really hard to predict the movement. But the market sentiment down there is not very favorable towards MYR. At least for the time being. But in the longer term, I have a strong believe that MYR will be back to 3.xx level. Every country has its own economy ups and downs.
Another piece of advice on the short term movement is to look closely on Fed decison to hike interest rate which is expected some time this year or perhaps early next year. Expect the USD to strengthen towards the year end as the news of the rate hike become more intense.
MYR/USD 1 Year Outlook (Source : Bloomberg.com)
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