US macro weakness and stable domestic prospects may drive move to 4.65/USD
As projected in our previous FX report, the ringgit managed to appreciate below the 4.70/USD threshold, driven primarily by emerging signs of weakness in the US job market and Fed Powell's hints at potential rate cuts. However, USD weakness was mitigated by safe-haven demand following the unexpected victory of the leftwing alliance in the French election. Nevertheless, positive domestic factors, such as stable labour market conditions, record-high distributive trade sales values, and the BNM's status quo, bolstered the ringgit, enabling it to overcome the greenback's strength and appreciate by more than 0.4% on a Thursday-to-Thursday basis.
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