August CPI to test stretched Fed hike bet; ringgit relief hinges on core
Performance: MYR closed Thursday at 4.065/USD from 4.045 last Friday, among EM’s weakest, after touching 4.070 on Wednesday.
Market Dynamics: A sharp yen rally on BoJ tightening and GPIF repatriation bets drove USDJPY below 155.0, while Houthi gains near Bab el-Mandeb lifted Brent above USD100/barrel (bbl). A smaller-than expected Treasury buyback revived the USD on Wednesday, sending MYR to 4.070. Otherwise, the greenback stayed soft despite firm payrolls and higher energy prices. The Ringgit lagged peers even with record August bond inflows of RM15.9b, pointing to domestic repricing rather than foreign selling.
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