The USD/MYR currency pair held near a 1-month high of 3.9510 on Thursday in the wake of the Central Bank of Malaysia’s policy decision and as the US Dollar remained firm in light of rising energy costs.
Global oil and gas prices have surged as the attacks on Iran disrupted energy exports from the Middle East.
And, Tehran’s retaliatory strikes on ships and energy facilities have closed navigation in the Gulf and led to production stoppages from Qatar to Iraq.
As a result, inflation fears have again taken hold, along with the possibility of fewer rate cuts by the Federal Reserve this year.
Strong US macro data also provided support to the US Dollar. Private businesses have added 63,000 jobs in February, or the most since July 2025, after a revised down 11,000 job growth in January. The latest ADP figure exceeded forecasts of 50,000.
Investors now turn their attention to the weekly jobless claims and the key Non-Farm Payrolls reports for fresh clues over the Fed’s policy path.
Meanwhile, the Central Bank of Malaysia maintained its benchmark interest rate at 2.75% at its March 5th meeting, in line with market consensus.
Policy makers noted that despite heightened volatility in global commodity prices due to recent geopolitical developments, the impact on Malaysia’s inflation is expected to be contained.
The USD/MYR currency pair was last up 0.09% on the day to trade at 3.9415.
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