Macro: The IMF raised Eurozone stagflation concerns. Malaysia pledged to maintain RON95 prices and review the SST expansion on imported fruits.

Forex: GBP and CHF outperformed G10 peers amid central bank decisions. MYR weakened 0.2%, though it fared better relative to Asian peers.

Fixed Income: Bond trading remained cautiously steady amid geopolitical developments and central bank decisions.

FX Daily Rates Vs. USD Last Close Per cent DXY 98.91 0.0 EUR/USD 1.150 0.1 AUD/USD 0.648 (0.4) GBP/USD 1.347 0.3 USD/JPY 145.45 0.2 USD/MYR 4.260 0.2 USD/IDR 16,395 0.6 USD/THB 32.76 0.4 USD/SGD 1.287 0.2 USD/CNY 7.188 (0.0)

Ringgit Outlook for The Week 1 2 Resistance 4.300 4.310 Support 4.200 4.180

Major Sovereign Yields (%) Sov. Yield Last Close bps UST 2Y 3.94 0 UST 10Y 4.39 0 Germany 10Y 2.52 2 UK 10Y 4.53 4 Japan 10Y 1.42 (4) Australia 10Y 4.22 (4) China 10Y 1.64 0

MGS Bond Yields (%) MGS Last bps 3-Year 3.22 1 5-Year 3.26 (0) 7-Year 3.49 (0) 10-Year 3.59 0 15-Year 3.74 1 20-Year 3.81 0 30-Year 4.01 0

MYR Swap Rates (%) Swap / Rates Last Close bps IRS 1-Year 3.28 1 IRS 3-Year 3.19 0 IRS 5-Year 3.28 0 IRS 7-Year 3.38 0 IRS 10-Year 3.50 (0) 3M KLIBOR 3.50 0

Key Commodities Commodities Last Close Per cent Brent (USD/bl) 78.85 2.8 WTI (USD/bl) 75.14 0.0 Gold (USD/oz) 3,371 0.0 CPO (RM/tonne) 4,077 0.0

Policy Rates Central Banks Current Next US Fed Funds 4.50 30-Jul ECB Deposit Rate 2.00 24-Jul BOE Base Rate 4.25 19-Jun RBA Cash Rate 3.85 28-Jul BOJ Cash Rate 0.50 31-Jul PBOC 1Y LPR 3.00 n.a. BOK Base Rate 3.00 -

BNM OPR 3.00 09-Jul Sources: Bloomberg, Trading Economics, AmBank Economics Note: Changes are based on day-on-day percentage, except for MGS Yield, Sovereign Yields, and IRS, where changes are in bps.

Macro Global: Global and Asian central banks on the move following the Fed's decision, including the SNB (expectedly) cutting policy rates by 25bps to 0.00% - its first zero rate since late-2022; while the BOE voted 6-3 to keep the Bank Rate unchanged at 4.25% - slightly more hawkish than markets' 7-2 voting expectations. The IMF raised stagflation concerns on the Eurozone outlook, coming as trade officials also said a 10% baseline US tariffs is likely to be maintained. ECB President Lagarde, however, remained upbeat, signalling that more regional trade can offset economic losses from global fragmentation.

Malaysia: PM Anwar Ibrahim assured that the government will not raise the price of RON95 petrol even if there is a sharp rise in global crude oil prices. Anwar also said the government is open to reviewing the list of goods and services now subject to SST, echoing Deputy PM Zahid's announcement to review the SST expansion on select imported goods, such as fruits.

Forex Global: DXY closed unchanged as G10 FX fared mixed. GBP outperformed peers (+0.3%) following the hawkish voting pattern by the BOE MPC, as it warned of 'two-sided inflation risks' from rising energy prices. CHF rose 0.2% amid the expected 25bps rate cut by the SNB, given easing inflationary pressures, weakening growth outlook, and very strong currency appreciation. However, the NOK (-0.6%) pared recent gains after the Norges Bank unexpectedly slashed policy rates by 25bps.

MYR: The MYR weakened 0.2% to 4.26, breaking off from its recent range of 4.20-4.25 amid some Asian FX pressure. However, it fared relatively well against Asian peers such as the PHP (-0.9%; dovish BSP rate cut), the THB (-0.4%; domestic political turmoil), and the TWD (-0.3%; policy rates left unchanged as expected).

Fixed Income Global Bonds: Bonds were traded steadily overnight as players continued to be wary of the Middle East war, which threatens to worsen, while sentiment was cautious post-FOMC and BOE meetings. 10Y Gilts were caught between the 4.50-4.55% level as the BOE held rates with a mixed vote seen by MPC members. 10Y Bund yields continued to hover near the 2.50% level.

MYR Bonds: The ringgit government bond market had a mixed showing yesterday. Yields were in a tight range as activity remained cautious post-FOMC meeting, with modest net selling pressure on longer tenors. Mixed activity was also seen in the ringgit corporate bond market. We particularly noted trading interest in GG Danainfra papers, though yields were mixed as well. Danainfra 01/30 closed unchanged to solidify its level at 3.33% on MYR100 million volume.

Commodities Oil: Brent rose 3% and looks set for its third-weekly advance amid reports that Trump will decide within two weeks whether to join the strike on Iran directly. Oil markets remained turbulent, with futures swinging within a USD8/bbl range and widening time spreads. Satellite imagery also revealed Iran is rapidly expanding oil exports and storage, as risks to production facilities and navigation via the Strait of Hormuz continue to rise.

Source: AmInvest Research - 20 Jun 2025