USD/MYR: Oil is not well – ANZ

The Malaysian ringgit faces added pressure from falling palm oil and crude oil prices as their demand outlooks remain depressed, according to strategists at ANZ Bank. USD/MYR trades at 4.3475.

Key quotes

“The Malaysian government has extended its movement control order to 12 May, which will impact domestic demand further.”

“Weak prices for Malaysia’s key commodity exports will result in a deterioration in its trade balance, which will ultimately weigh on the MYR.”

“Adding in prospects for further foreign portfolio outflows, we see USD/MYR heading towards 4.50 by Q3.”