USD/MYR rises to 4.0970 as US-Iran tensions overshadow Malaysia’s robust Q2 GDP growth and foreign equity inflows.
The Malaysian Ringgit declined against the US Dollar, closing at 4.0970, as escalating US-Iran tensions fueled risk-off sentiment and boosted demand for the greenback. The move occurred despite stronger-than-expected Q2 GDP data and improved foreign equity flows, indicating external factors drove the selloff.
Bank Negara Malaysia’s decision to hold interest rates steady earlier in the week removed some policy support for the Ringgit. While domestic yields remained stable, fading expectations for a near-term rate hike may have contributed to the currency’s weakness. Lingering uncertainty ahead of the Negeri Sembilan election also weighed marginally.
Analysts suggest USD/MYR may remain supported if geopolitical risks persist, though resilient domestic growth and portfolio inflows could limit further Ringgit depreciation. Technical indicators show bearish momentum waning, with the RSI rising.