The USD/MYR currency pair remained stuck in a narrow daily range on Tuesday ahead of the outcome of the Central Bank of Malaysia’s policy meeting and following the latest CPI figures out of Malaysia.
The Central Bank of Malaysia is anticipated to maintain its benchmark interest rate at 2.75% at its January 22nd meeting.
Policy makers had said headline inflation was expected to remain moderate in 2026 amid continued easing in global cost pressures, while core inflation is expected to remain stable and close to its long-term average.
The latest data showed annual headline inflation in Malaysia had picked up to 1.6% in December from 1.4% in November. It has been the highest rate since January.
And, annual core inflation picked up to 2.3% in December, the highest since October 2023.
Meanwhile, the US Dollar has faced selling pressure as the so-called “Sell America trade” gains traction amid concerns that relations between the US and the EU could deteriorate.
US President Donald Trump said over the past weekend that the US would implement a wave of increasing tariffs on European allies until it is allowed to acquire Greenland.
Trump said the US would impose a 10% tariff on imports from several EU countries that oppose the Greenland proposal.
Amid these disputes, US Treasury Secretary Scott Bessent stated at the World Economic Forum in Davos that Washington would not terminate its NATO membership.
The USD/MYR currency pair was last flat on the day to trade at 4.0520.
The exotic Forex pair has been holding below 1-week high of 4.0610.
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