Payrolls hold the key to the 4.02/USD handle
Performance: Ringgit ended Thursday at 4.033/USD from 4.039 last Friday, after touching 4.026 on lower US yields and softer oil.
Market Dynamics: Lower UST yields after Bessent’s intervention lifted MYR to 4.026/USD on Wednesday. The ringgit retraced to 4.033 as headline inflation firmed marginally and investors trimmed USD shorts ahead of Warsh’s speech. Falling long-end yields and softer household spending reinforce our view that fiscal and growth concerns are limiting USD upside. Tighter Fed and BoJ repricing, however, has kept investors cautious on extending MYR gains.
Download Full Content:
