Renewed Hormuz flare-up and central bank week set to cap USDMYR upside
Performance: The MYR weakened to 3.97/USD on Thursday after holding near 3.95/USD level earlier in the week.
Market Dynamics: Iranian vessel seizures in the Strait of Hormuz despite the ceasefire extension triggered fresh USD safe-haven demand. USDMYR moved higher Thursday as risk appetite faded, heightening concerns over prolonged oil-price pressure and inflation pass-through. Consequently, investors rotated into the USD while reducing exposure to pro-growth EM currencies.
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