Seen grinding towards 4.12-4.13/USD in early December as Fed-cut bets solidify
Performance: The ringgit strengthened within a narrow 4.13–4.14/USD range as the DXY slipped below 100.0 level.
Market Dynamics: Markets sharply repriced the odds of a December Fed cut after NY Fed President John Williams signalled support. Yet the DXY initially held above 100.0, likely reflecting year-end rebalancing ahead of Thanksgiving. It later fell towards 99.5 as investors converged on lower-rate expectations and rotated out of safe havens amid cautious optimism over Russia–Ukraine developments. Softer-than-expected core PPI (0.1% MoM) and retail sales (0.2% MoM) further cemented the dovish shift.
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