Geopolitical risk and Fed uncertainty to cap MYR around the 3.95/USD level
Performance: The MYR strengthened toward 3.92/USD as the DXY briefly retreated on tentative geopolitical optimism.
Market Dynamics: Reports of safe vessel passage through the Strait of Hormuz eased immediate energy supply fears. Brent crude pulled back from recent highs while the DXY slipped toward the 99.6 level. This short-lived easing in the risk premium temporarily reduced the greenback’s safe haven appeal. Tactical position squaring then drove early flows as market participants reduced USD exposure.
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