July exports surged 38% year-on-year, bolstering the ringgit amid a softer USD and strong domestic fundamentals.
The Malaysian ringgit remains supported by a 38% year-on-year jump in July exports and a widened trade surplus of MYR22.5bn. The data underscores resilient growth following a strong second-quarter GDP print, driven by electronics and higher palm oil prices.
Analysts note the softer USD backdrop and favorable domestic fundamentals continue to underpin the currency. However, elevated oil prices and long-end US Treasury yields may limit near-term gains in the ringgit.
USD/MYR last traded at 4.0450, with bearish momentum intact but oversold conditions suggesting a potential rebound. Resistance is seen at 4.0610, while support levels hold below current prices.