Holds range as sticky US inflation and compressed volatility limit directional move
Performance: Ringgit held steady within 3.92-3.93/USD, with limited directional follow-through despite evolving macro and geopolitical development.
Market Dynamics: US-Iran negotiations remained stalled, sustaining energy supply risk premium and keeping crude oil elevated. Stronger US inflation data reinforced expectations of a prolonged restrictive Fed posture, anchoring US yields at elevated levels. However, FX response stayed muted. Compressed volatility and resilient equity markets dampened macro transmission, keeping USD gains and EM FX weakness within tight ranges.
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