USD rally fatigue anchors MYR near 3.90
Performance: The MYR strengthened towards 3.90/USD, tracking broad USD softness despite resilient US labour data.
Market Dynamics: USD weakness remained the primary driver of MYR gains. The DXY slipped below 97.0 as markets chose to sell rallies rather than extend them. December retail sales disappointed, signalling softer real consumption. January payrolls beat at 130.0k with unemployment at 4.3%, yet heavy downward revisions diluted momentum. The DXY could not hold gains despite firmer front-end yields. Reports that Chinese regulators urged banks to limit US Treasury concentration reinforced diversification themes, while options markets continue to demand for USD downside hedges.
Download Full Content:
