Energy shock and Middle East tensions lifts USD, keeping ringgit pressured near 3.95/USD
Performance: The MYR depreciated toward the 3.95/USD level, last seen about a month ago, as Brent surged by roughly 18.0% over the period and the USD index (DXY) climbed above the 99.0 mark.
Market Dynamics: The USD strengthened as Middle East tensions intensified. The DXY climbed from around 97.6 last Friday to above 98.3 after the US-Israel strike on Iran. It later moved past 99.0 when Qatar suspended gas production following an Iranian attack. Higher oil prices also raised doubts that the Fed will deliver two rate cuts this year. Rising volatility triggered position reductions and supported the DXY as investors unwound short USD exposures.
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