Adopts defensive stance ahead of Trump’s reciprocal tariff announcements
Performance: The ringgit traded defensively, hovering narrowly between 4.43-4.44/USD. This stability persisted despite a rebound in the USD index (DXY), spurred by the unwinding of short positions.
Market Dynamics: Trump’s hint at exemptions for certain countries under the reciprocal tariffs has bolstered risk sentiment. While US business activity continues to grow, consumer confidence has fallen to a four-year low, fuelling spending concerns. The US trade deficit remains near record highs, which could drag on 1Q25 growth. Stability in US asset markets provided some support to the DXY.
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