USD/MYR settles below 2 1/2-week high, posts weekly loss

The USD/MYR currency pair settled below recent high of 4.2580, its strongest level since June 24th, in the wake of solid US macro data.

US retail sales growth was stronger than expected in June, 0.6% month-over-month, while initial jobless claims dropped more than expected in the week ended July 12th.

Annual CPI inflation accelerated to 2.7% in June, or the highest rate since February, from 2.4% in May.

And, annual core inflation picked up to 2.9% in June from 2.8% in May.

The data suggested tariffs were beginning to have an impact on inflation and likely prompting the Federal Reserve to leave borrowing costs on hold until September.

Markets are now pricing in about 45 basis points of interest rate cuts by the Fed by year-end.

Meanwhile, the latest data out of Malaysia showed the economy had expanded 4.5% year-on-year in the second quarter of 2025, compared to a 4.4% growth in the previous quarter.

Growth was mostly driven by a faster expansion in agricultural activity, 2% YoY compared to a 0.6% increase in Q1.

Market players also continued to keep a close eye on trade negotiations.

The USD/MYR currency pair settled 0.05% higher at 4.2440 on Friday.

The exotic Forex pair lost 0.14% for the week.