Ringgit Weekly Outlook - 28 June 2024

To test 4.70/USD if US data weakens, outlook hinges on French election outcome

As expected, the ringgit was range-bound between 4.705 and 4.718 against the USD despite weak US housing data. The USD index (DXY) surged above the 106.0 level on June 26, driven by the weakening of the EUR and GBP amid French political uncertainty and heightened expectations of a BoE rate cut in August. The DXY also received support from the JPY falling to its lowest level since December 1986. Additionally, weak yuan fixing, and a lack of domestic catalysts contributed to the downside pressure.