Under strain as robust US macro fuels USD strength and market caution
Performance: As expected, the ringgit traded within the 4.49–4.51 range against the USD this week, reflecting a weaker stance amid broader USD strength. The USD index remained elevated above the
109.0 level, supported by stronger US economic data and investor positioning ahead of Trump’s return to power.
Market Dynamics: Hawkish US data, including stronger-thanexpected JOLTs figures and accelerating services sector activity, bolstered the long-USD narrative. Additionally, December FOMC minutes reaffirmed the Fed’s readiness to slow its pace of easing, further anchoring USD demand. A brief spike in FX volatility on Monday, triggered by speculation over selective US tariff policies, was swiftly countered by Trump, reinforcing USD bullish outlook.
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