US Greenback, Malaysian Ringgit, USD/MYR, Mahathir Mohamad, Coronavirus – Speaking Factors
- US Dollar soared towards Malaysian Ringgit after Mahathir Mohamad resigned
- Fiscal stimulus bets at the moment are unsure, will Financial institution of Malaysia step up and minimize?
- USD/MYR on the sting of bullish breakout after extended consolidation mode
Malaysian Ringgit Sinks After Mahathir Mohamad Resigned, Coronavirus Fears Surged
The US Greenback, which has been rallying up a storm towards ASEAN currencies, might have extra room to make rise towards the Malaysian Ringgit and push USD/MYR to the upside. This follows the abrupt resignation of Prime Minister Mahathir Mohamad on Monday, throwing Malaysia right into a clout of near-term political uncertainty. This tends to extend the danger premium for investing in a rustic and inducing market volatility.
In consequence, the FTSE Bursa Malaysia KLCI index – a composite of main native public firms – has ended a record-breaking bull streak that lasted 12 years. Together with the draw back hole on Monday, the KLCI declined about 2.7 % from final week’s shut as concerns on the coronavirus rose. The index is now about 21% decrease from the 2017 peak, better than the -20% threshold for the everyday definition of a bear market.
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