Bank Negara Malaysia raised the Overnight Policy Rate (OPR) by 25 basis this week has been expected by a number of economists who are now projecting a further rise in the OPR by year end.
The stronger economic growth for the fourth quarter last year provided the room for Bank Negara to normalize interest rates after cutting it to a historical low last year.
As expected, the ringgit also strengthened with USDMYR fall badly this week. Earlier in the week there is a dead cross of 200 EMA with 60 EMA and the price broke through the supporting bottom line of the triangle, it then penetrated the 61.8% retracement. The next support is at 3.3276 i.e. 100% retracement with prices expected to consolidate next week.
