KUALA LUMPUR (Jan 3): Ringgit retreats after briefly touching a 16-month high as the dollar climbs for the first time in 6 days and a rally in energy prices stalls.
* USD/MYR gains 0.21% to 4.0255 after reaching 4.0160, lowest since August 2016
** Support 4.0000, 3.9300, 3.8465; resistance 4.0465, 4.0965, 4.1411
** BBDXY +0.1%; Brent steady after falling 0.5% Tuesday
* 10-year yield climbs 1bp to 3.91%
* Govt to auction RM2b of 20-year bonds on Thursday
* Stronger MYR should provide a tailwind to govt bonds in the near term with few events on the horizon expected to derail the momentum, says Winson Phoon, fixed-income analyst at Maybank Investment Bank
** Co. has a cautious medium-term view given potential for a BNM interest-rate hike and the risk of a reversal in MYR strength if global sentiment shifts
* Exports +15% in November y/y vs +18.9% in October, according to Bloomberg survey ahead of data due Friday
** Trade surplus RM11b in November vs RM10.6b October: survey
* Exports are likely to continue rising at double digit rates, thanks to the ongoing global recovery, DBS economist Irvin Seah wrote in note Tuesday
** Forecasts November export growth of 15.2% and trade surplus of RM10.8b