FOMC and US-Iran deal in focus as stronger USD narrative persists
Performance: MYR weakened to around 4.07/USD as stronger US data reinforced expectations of a higher-for-longer Fed.
Market Dynamics: A stronger US macro backdrop and rising expectations of Fed policy restraint boosted the USD. The ringgit weakened as markets pushed back Fed easing expectations and repriced higher US yields. Stable US employment and resilient inflation have reinforced the cyclical bullish USD narrative despite lingering geopolitical uncertainty. FX positioning remained USD supportive as investors maintained defensive EM allocations while awaiting greater clarity on both the geopolitical and policy fronts
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