Ueda's cadence signal meets a stretched Fed hike premium
Performance: MYR closed Thursday at 4.099/USD from 4.071 last Friday, after the Fed's hawkish hike lifted the USD broadly.
Market Dynamics: The Fed delivered a unanimous 25 bps hike to 3.75%-4.00% and signalled one more this year, while the Saudi East-West pipeline shutdown lifted Brent above USD105.0/barrel (bbl). Two year USD swap rates jumped and DXY break above 100.0, sending MYR to 4.099. The Fed dropped its supply-shock framing, and markets now price roughly three further hikes, well above the median dot. A firmer USD floor and fragile risk sentiment kept investors from adding ringgit longs.
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