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President Trump is attempting to remove Federal Reserve Governor Lisa Cook over mortgage fraud allegations, reviving efforts after a Supreme Court rejection in June, signalling potential turbulence ahead for US monetary policy.
Economists forecast the Malaysian ringgit will trade between 3.90 and 4.20 against the US dollar through the second half of 2026, underpinned by resilient economic growth, a persistent trade surplus and credible central bank policy.
S&P Global Ratings has reaffirmed Indonesia's sovereign credit rating at BBB with a stable outlook, reinforcing international confidence in the country's macroeconomic fundamentals and economic trajectory despite global headwinds.
Malaysia's central bank is expected to keep interest rates unchanged through 2026 as economic growth strengthens and inflation remains under control, according to multiple research houses.
MBSB Investment Bank has raised its 2026 GDP growth forecast to 4.5% from 4.2%, citing strong export performance and contained inflation. The outlook suggests Malaysia's central bank will keep interest rates unchanged at 2.75%.
CIMB Treasury predicts Bank Negara Malaysia will keep the overnight policy rate at 2.75% this Thursday, citing reduced inflation risks from falling oil prices and the BUDI Diesel programme's impact.
Japan's Finance Minister Satsuki Katayama has reiterated Tokyo's willingness to intervene in currency markets, as the yen rebounds from 40-year lows. Close US-Japan coordination on foreign exchange issues remains a priority amid broader economic pressures.
The US dollar is on track for its largest weekly decline in three months following disappointing June employment figures that have dampened expectations of imminent Federal Reserve rate increases.