Limited upside amid robust USD demand
While the local market remained subdued, global developments actively shaped FX dynamics this week. The USD Index (DXY) initially rallied, driven by Trump's threat of a 100.0% tariff on BRICS nations, stronger-than-expected JOLTs data, the collapse of the French government, and South Korea's unexpected political turmoil. These events bolstered demand for safe-haven, high-yielding US assets. However, dovish remarks from Fed Waller hinting a potential rate cut and a weaker ISM Services PMI pushed the DXY below 106.0, enabling the ringgit to strengthen to around 4.43/USD.
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