USD steadies as Fed cut expectations shifts, MYR holds firm below 4.00
Performance: As expected, the DXY rebounded, prompting a modest correction in the ringgit toward 3.95/USD. Even so, the ringgit continued to strengthen against other major currencies.
Market Dynamics: The USD regained composure this week as the earlier de-basement narrative unwound. The DXY recovered toward the 98.0 area, supported by firmer US data, easing volatility in metals and a broader stabilisation in global risk appetite. Trump’s appointment of Kevin Warsh as the new Fed chair has added further support to the USD. While the firmer USD exerted some pressure on
the ringgit, the impact remained marginal, as resilient domestic fundamentals continue to provide an effective counterweight.
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