To trade steady despite geopolitical tensions as soft USD narrative persists
Performance: As anticipated, the ringgit held within a narrow band of 4.22–4.24/USD this week, supported by a weaker greenback.
Market Dynamics: The ringgit initially weakened after strong NFP data reduced market expectations of near-term Fed rate cuts, lifting the USD on firmer yields. The ringgit then regained some ground as US-China trade discussions buoyed risk sentiment. Thereafter, softer US CPI figures flipped the market narrative towards a dovish stance, reinforcing expectations of Fed easing and pulling the DXY below the 98.0 level.
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