Sub-4.10/USD in sight as data and major central banks might steer USD lower
Performance: The ringgit strengthened towards 4.10/USD postFOMC, in line with expectations, as the DXY moved closer to 98.0.
Market Dynamics: The ringgit held around 4.11–4.12/USD as investors questioned whether the global easing cycle had ended. Talk of potential hikes in Australia, New Zealand and Canada, along with hawkish comments from the ECB’s Schnabel, added uncertainty. Even so, markets kept a dovish view on the Fed, supported by the prospect of Kevin Hassett’s nomination and seasonal USD softness. The Fed’s 25 bps cut lifted risk assets, although the hawkish dot plot limited USD weakness. The plan to buy USD40.0b in T-bills to manage balance-sheet maturities is seen as a mild USD negative.
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