KEYPOINTS

• An anticipation of US rate hike will keep things hot for MYR and regional currencies in 2H15
• Fitch decision to maintain rating and accord a stable outlook on Malaysia’s sovereign debt is a temporary relief for MYR but downside risk to persist
• SGDMYR hit new high of 2.80, it works as a comparative measure of success and hidden strategy
• Strong resistance at 3.80 level for USDMYR as BNM seems to take defending it as sacrosanct.
• To reflect the downside risk in 2H15, we are revising our 2015 forecast for the average USDMYR to 3.68.

Source: Kenanga Research - 1 July 2015