Chart 1: USD/MYR's daily chart as at June 8, 2015 (Source: XE.com)
If we looked at the long-term chart, we can see that BNM has in the past come in to support MYR if the rise of USD-MYR is excessive or overdone. We saw that in 2009, when USD-MYR broke above the then long-term downtrend line, R1-R1. I personally believe that the current breakout of RR would elicit similar BNM's intervention. The most likely level will the 3.75-3.80 mark.
Chart 2: USD/MYR's monthly chart as at June 8, 2015 (Source: tradingeconomics.com)
A weak MYR will benefit exporters and impact importers. It would also impact those with large foreign denominated debts (example: Airasia & IOI Corp) while benefiting those who have investments overseas. However, if MYR weakness was brought on by a prolonged leadership problem that could easily morphed into a political crisis, then all of us will be the losers. We can only hope that our leaders would take the right action by putting the national interest above their personal interest.
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