Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 12): Ringgit retreats for a second day after the Bloomberg Dollar Spot Index rallied overnight to recover from the lowest in more than two years.

* USD/MYR gains 0.2% to 4.2060

** Support 4.1825, 4.1733, 4.1442; resistance 4.2060, 4.2262, 4.2505

** BBDXY steady after advancing 0.6% Monday; reached the lowest since January 2015 last week

* Current market momentum is inclined toward being short USD vs EM Asian FX amid easing odds of an aggressive Fed tightening and a stabilization in geopolitical risks, says Angus Salim Amran, head of financial markets at RHB Investment Bank in Kuala Lumpur

** Still, waning USD strength is temporal as U.S. data in the coming months are likely to underscore the trajectory for higher interest rates

* Societe Generale sees USD/MYR reaching 4.19 by year-end and 4.25 by end-1Q, strategists including Jason Daw wrote in report Monday

** Co. is bullish on EM FX through year-end, citing very slow Fed tightening cycle, near-term stability in Chinese growth, falling volatility and strong fundamentals

* Foreign ownership of Malaysian sovereign and corporate debt fell 0.4% to 191.8b rgt in August from July, a third month of declines, according to central bank data released Monday

** Drop in foreign holdings last month was due to maturity- driven outflows and real-money interest has improved since mid- August especially in the belly of the curve, Maybank Investment fixed-income analyst Winson Phoon wrote in report Monday

*** Global funds were likely raising positioning on Malaysia to neutral from underweight amid a perception that Southeast Asia may be relatively safe from geopolitical risks on the Korean Peninsula

* BNM issues forex administration rules involving crude palm oil futures to facilitate hedging by foreign players * PM Najib meets U.S. President Trump at White House Tuesday amid a Department of Justice probe into Malaysian state fund 1MDB involving alleged money laundering and embezzlement

 

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