Ringgit torn between rising oil, global yields

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KUALA LUMPUR (Sept 24): Ringgit starts the week on a rangebound note as the stronger dollar offsets rising crude prices and inflows into Malaysian equities.

* USD/MYR rises 0.1% to 4.1343 with next resistance at 4.1535, Sept. 12 high

** Support 4.0904, 4.0900, 4.0413

* Brent price is up 1.2%; global funds bought $74.5m of Malaysian shares Sept. 21, biggest one-day inflow since end-July

* Bloomberg Dollar Index is up 0.1% after gaining 0.2% Friday as 10-year Treasury yield ended the week at 3.06%

* Ringgit is caught between a rock and a hard place, as the favorable impact of higher oil prices is tempered by rising global yields, says Stephen Innes, head of Asia-Pacific trading at Oanda Corp. in Singapore

** USD/MYR is expected to trade within 4.12-4.16 range

* 10-year govt bond yield drops 3bps to 4.08% after climbing 2bps on Sept. 21

* Singapore’s Attorney-General’s Chambers held meetings with Malaysia, U.S. and Switzerland last week to discuss probe into Malaysian state fund 1MDB

* PM Mahathir Mohamad said last Friday he was informed there’ll be “many more” 1MDB charges to come

* PM Mahathir meets Dyson, Lotus and key investors in trip to the U.K

* Foreign-exchange reserves fell 0.5% to $103.9b in the first two weeks of September: central bank data