In the view of Markets Strategist Quek Ser Leang at UOB Group, USD/MYR is likely to extend the current upside momentum in the short term.

Key Quotes

“In our latest update from last Tuesday (25 Apr, spot at 4.4360), we highlighted that ‘The underlying appears to be firm, and the bias for USD/MYR this week is still on the upside’. We noted that ‘there are a couple of strong resistance levels at 4.4410 and 4.4550’. The anticipated USD/MYR strength exceeded our expectations as it rose to a high of 4.4625 last Wednesday. Upward momentum has improved, albeit not by much.”

“This week, USD/MYR could strengthen further but a sustained rise above 4.4850 appears unlikely this week. On the downside, a breach of 4.4200 would indicate that USD/MYR is not strengthening further.”