On the defensive as geopolitics and hawkish Fed repricing to cap recovery
Performance: USDMYR traded within 3.95–3.98, with ringgit edging weaker as geopolitics drove sentiment.
Market Dynamics: Tit-for-tat US-Iran military strikes earlier in the week kept risk sentiment fragile before a tentative breakthrough on Thursday. US and Iranian negotiators reached a 60-day ceasefire MOU to extend the truce and launch nuclear talks, though Trump’s approval and Iran’s formal confirmation remain pending. Higher US yields reinforced broad USD demand as markets repriced Fed expectations toward renewed tightening. FX positioning stayed defensive, with the DXY holding near 99.0 and EMFX recovery attempts capped by lingering geopolitical uncertainty
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