Hawkish Fed repricing and prolonged Hormuz tensions to keep USDMYR range-bound
Performance: The MYR gained modestly to 3.95/USD early in the week from 3.97/USD previously, lifted by risk-on sentiment, before stabilising as geopolitical and Fed risks reasserted themselves.
Market Dynamics: Progress toward a durable US-Iran resolution remains uneven, with extended blockade risks, renewed Strait disruptions, and elevated oil prices sustaining USD safe-haven demand. The Fed’s hawkish hold, growing resistance to easing, and higher US yields, particularly with the UST 10-year near 4.40%, reinforced USD resilience. Consequently, EM currencies including the MYR remain vulnerable to near-term external pressure.
Download Full Content:
