July payrolls and gulf risks set to steer the post-Fed range for MYR
Performance: MYR held broadly steady near 4.09/USD as post-Fed USD weakness offset lingering Gulf-driven energy risks.
Market Dynamics: The Fed held rates in a 9-3 vote. Chair Warsh argued that tighter financial conditions had already delivered part of the needed restraint. The Treasury curve steepened and the USD weakened as investors unwound precautionary positions built ahead of the meeting. Softer 2Q26 GDP and cooler core PCE reinforced expectations of an extended Fed pause, despite the hawkish dissent. The ringgit stabilised near 4.09/USD as postFOMC USD weakness offset persistent Gulf-related oil risks.
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