KUALA LUMPUR (Sept 6): Malaysia’s ringgit has been fairly resilient compared with its emerging-market peers, although further dollar strength will hurt the currency, according to Australia & New Zealand Banking Group Ltd.
* Broader USD moves are dictating the ringgit’s direction and if USD/MYR breaches 4.15, next topside level would be 4.20, says Khoon Goh, head of Asia research at ANZ in Singapore
* Bank Negara Malaysia’s policy statement Wednesday is neutral, though it notes external risks to growth including market volatility and trade tensions
* There are “no indications at all that BNM is looking to make any changes to policy, characterizing the degree of monetary accommodation as consistent with the intended policy stance,” says Goh
* Expects no change in benchmark rate for the rest of the year
* NOTE: USD/MYR climbs 0.2% to 4.1458 after reaching 4.1470, highest since November
* NOTE: BNM kept its benchmark interest rate unchanged at 3.25% on Wednesday, as predicted by all 17 economists in a Bloomberg survey