Likely for balanced movement with potential for gains amid improving risk appetite
As expected, strong demand for the USD due to uncertainty about the Fed's outlook has bolstered the DXY within a 103.4 to 104.0 range, keeping the ringgit weak above 4.70/USD. Following the FOMC meeting, the ringgit recovered some losses, helped by Fed Chairman Powell's remarks, which were interpreted as dovish. Despite the pivotal decision by the BoJ to end its negative interest rate policy and stronger-than-expected China’s IPI and retail sales data, the ringgit surprisingly did not strengthen. Also, disappointing export growth domestically has further weighed on the currency.
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