Ringgit Weekly Outlook - 27 October 2023

Neutral-to-bullish on major central banks’ decisions and US macro readings

The ringgit extended last week's losses and depreciated to its weakest level on record against the USD. The local note breached its 1998 low of 4.77 as the 10-year US Treasury (UST) soared above the 5.00% level for first time since July 2007, driven by increasing demand for safe-haven assets amid the Middle East crisis. The USD also strengthened due to the election of a new US House Speaker, which helps mitigate the risk of a potential government shutdown by November 17. Of note, year-to-date, the local note has already weakened by a substantial 8.6% vis-à-vis the greenback.