Likely to firm further as domestic momentum to outweigh Fed uncertainty
Performance: The ringgit strengthened to around 4.18/USD on Thursday, even as the USD index traded firmer near the 100 level.
Market Dynamics: The ringgit gained against most major currencies, supported by firm domestic sentiment. Foreign investors added RM1.6b to Malaysian bonds last week as expectations of a BNM rate cut faded and growth optimism returned. BNM’s continued pause has bolstered confidence, while fiscal discipline and political stability have helped Malaysia stand out among regional peers. The USD remained moderately supported as markets debated the scale of the Fed’s easing cycle amid mixed policymaker signals and limited data. Futures still price about a 70.0% chance of a December cut.
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