To trade sideways as focus shifts to US inflation and unemployment data release
Performance: While the ringgit has been trading broadly stable in line with our expectations, US strikes on Iran over the weekend unsettled markets on Monday, driving it close to 4.30/USD.
Market Dynamics: The US dollar index (DXY) traded on a softer footing this week, ranging between 97.7 and 98.4, even as geopolitical tensions stirred risk-off sentiment. Notably, investors turned to EUR denominated assets rather than the greenback as the spike in oil prices proved short-lived. Risk appetite recovered after Trump announced a ceasefire between Iran and Israel, helping to reverse much of the ringgit’s earlier weakness. A pullback in both oil and the DXY followed, reinforced by increasingly dovish Fed signals.
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