To rangebound as markets await US–Russia summit and Jackson Hole symposium
Performance: The ringgit strengthened to 4.21–4.23/USD this week as the USD index (DXY) dipped to as low as 97.8 on Wednesday.
Market Dynamics: The DXY gained early support after Trump extended the tariff pause on China, signalling a temporary easing of trade tensions. It later softened as core inflation came in slightly above expectations, enough to stir concern but not enough to override the weak jobs data. While Treasury Bessent called for a 50 bps cut in September, markets anchored themselves to 25 bps and three cuts in 2025. Sentiment shifted sharply after the PPI surged 0.9% MoM for both headline and core, well above the 0.2% MoM consensus, prompting traders to scale back to just two 25 bps cuts.
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