Budget 2027, Fed hawkishness and US Sep CPI put ringgit’s 4.10 line to the test
Performance: MYR eased to 4.092/USD on Thursday from 4.085 last Friday, holding a tight 4.085-4.092 range all week.
Market Dynamics: French fiscal turmoil sank the EUR and lifted DXY to fresh year highs. Hawkish September FOMC minutes and Waller's remarks locked in bets on a December hike. Brent held above USD100/barrel because reports of US strike plans on Iran outweighed Trump's pledge not to attack before the midterms. Sticky oil and an AI-driven inflation impulse keep Fed tightening expectations firmer than those for the ECB. Elevated UST yields and rising volatility drained carry flows, leaving investors light on ringgit ahead of Budget 2027.
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