Under pressure as Fed pare down dovish signal and Middle East crisis
The ringgit initially strengthened to its highest level in over 39 months, reaching 4.12/USD on Monday, before sharply retreating to 4.22/USD yesterday. A pro-ringgit boost, driven by a weakerthan-expected US PCE inflation report and China’s sweeping stimulus measures last week, proved short-lived as the USD rebounded. This came after Fed Chair Powell pushed back against expectations of another 50 bps rate cut by year-end, further supported by an unexpected rise in August job openings. The dollar also found safe-haven demand amid escalating tensions in the Israel-Hezbollah-Hamas-Iran conflict.
Download Full Content:
