Friday 29 Mar 2024
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KUALA LUMPUR (Nov 12): Ringgit declines for a third day as crude prices hover near a seven-month low, weighing on the outlook for the government’s finances.

* USD/MYR gains 0.1% to 4.1835

** Support 4.1507, 4.1227, 4.0900; resistance 4.1860, 4.1990, 4.2437

* USD/MYR will likely continue to head higher as the dollar remains buoyed by haven demand, says Mingze Wu, a Singapore-based foreign-exchange trader with Intl FCStone Global Payments

** Next key level would be 4.19, followed by 4.20. Traders will be watching to see if the move higher will draw any comments from BNM

* 3Q GDP data will be crucial for MYR in an environment where traders are increasingly pricing in a greater policy divergence between BNM and the Fed, Stephen Innes, head of trading for Asia-Pacific at Oanda in Singapore, writes in daily note

** Economy may have been boosted by increased consumption after the removal of the goods and services tax in June, although any positive impact will not be significant for MYR

** If the GDP print is below 5%, USD/MYR may approach the key 4.20 level

* 3Q GDP data due Friday; est. +4.7% y/y vs +4.5% in 2Q

* Malaysia is still holding talks with China on the East Coast Rail Link, PM Mahathir Mohamad said Nov. 9

* All dividends paid out by Petronas will take into account the company’s ability to service its debts, according to a Bernama report citing the state oil company

** NOTE: Moody’s cut Petronas’s outlook to negative after the govt said it’s counting on a special dividend from the company to help fund the fiscal shortfall

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