The Canadian Dollar is trading at 3.17 against the Malaysian Ringgit this morning, up 0.23% with a YTD return of 0.61%. The pair had an open rate of 3.1689, similar to their previous close at 3.1679. CAD/MYR day range will sit between 3.16 and 3.17, the 52-week range is anticipated to move between 2.99 and 3.20.
CAD/MYR has experienced some turbulence over the last six months with the exchange rate fluctuating between 3.11 and 3.18. The loonie reached the 3.19 level in mid-January but dropped quickly to the 3.14 mark by month’s end. CAD/MYR has since been moving in an upwards trend as February begins, with hopes to make its way back to the 3.18 support level.
Malaysia’s stocks and currency are expected to continue falling since the country’s king declared a state of emergency, hoping to lower coronavirus case numbers. The lockdown is expected to last until August 1st which will ultimately impact the success of the country’s currency.
“A Malay-language statement issued by the palace, translated by CNBC, said the ‘proactive step’ was requested by Prime Minister Muhyiddin Yassin due to surging COVID infections in the country.”
Canada is close to the same benchmark and Malaysia with daily case numbers; Canada with a 7-day average of 4016 and Malaysia with a weekly average of 4685 but, Canadians have been seeing a decline in COVID numbers since the beginning of the year which positions CAD in a more favorable position for traders in the coming weeks.
With vaccines becoming more accessible to the North American population, CAD/MYR is expected to continue rising as February progresses. Traders will also be assessing how the recent increase in Canada’s employment rates and oil prices will benefit their rate of return in the long-term.
By Surina Nath