Ringgit Weekly Outlook - 14 June 2024

Tepid US economic data and stable China’s macro may support gains

The ringgit weakened to above the 4.72/USD level on Monday before recovering back to below 4.71/USD on Thursday. The ringgit was initially pressured by last Friday's stronger-than-expected nonfarm payrolls reading. However, the softer-than-anticipated May CPI print (0.0% MoM; Consensus: 0.1%) helped the ringgit regain some ground. Subsequently, the USD index (DXY) rebounded to above the 105.0 level as the Fed, during the FOMC meeting, revised its inflation forecasts upward and signalled the possibility of only one rate cut this year, down from the previously expected three.