Eyeing 4.20/USD as Fed cut looms, US–China talks in focus
Performance: While other ASEAN-5 currencies weakened against the USD this week, the ringgit held steady around 4.23/USD.
Market Dynamics: The USD’s initial weakness, triggered by renewed worries over US regional banks and credit quality, faded as hawkish repricing along the Fed curve reversed losses. It also gained support from the EUR’s drop after S&P downgraded France’s sovereign rating to A+ from AA–, and from the JPY’s weakness following safe-haven unwinding and the appointment of Sanae Takaichi as Japan’s new prime minister. A slump in precious metals and fresh US sanctions on Russia further supported the USD. Despite this, the ringgit held firm, supported by optimism after MY’s stronger-than-expected advance 3Q25 GDP print last week.
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