Energy shocks and geopolitical tension caps MYR near 3.93-3.95 level despite LNG buffer
Performance: The MYR depreciated toward 3.96/USD before stabilising near 3.93/USD as Brent crude retreated from its peak.
Market Dynamics: The ringgit initially weakened past 3.96/USD as Brent spiked near USD120.0/bbl. The local note then strengthened toward 3.92-3.93/USD as high LNG prices partly offset the broader impact of rising global oil costs. Malaysia’s status as a leading LNG exporter provides a structural buffer compared with regional energy importers. This reduced downside pressure on MYR limited USD gains against the ringgit, even as the broader USD remained firm.
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