Trade optimism to boost USD; risk sentiment pressures EM currencies
Performance: For the third consecutive week, the ringgit outpaced house expectations, appreciating more than anticipated. Still, it traded in a wide band of 4.20–4.28/USD, reflecting heightened volatility (+9.0%) amid persistent global uncertainty.
Market Dynamics: The ringgit began the week on a strong footing at 4.20/USD, despite robust US economic indicators as investors sought alternative reserve assets to hedge USD exposure. As the week progressed, the ringgit weakened to 4.24 and later to 4.28, driven by renewed optimism over US-China trade talks and the removal of US tariffs on UK steel and aluminium.
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