Ringgit set for 12th weekly drop on EM selloff

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KUALA LUMPUR (Sept 7): Malaysia’s ringgit heads for a 12th weekly decline, the longest losing streak in three years, amid a selloff in emerging-market assets.

* USD/MYR climbs 0.9% this week to 4.1465 after reaching 4.1480 on Thursday, highest since Nov. 2017; pair is little changed Friday

** Support 4.0900, 4.0744, 4.0413; resistance 4.1533, 4.1645, 4.2437

* Nation’s 10-year bond yield has climbed 12bps this week to 4.17%, set for biggest weekly increase since October

* Asian local rates have been hit by EM contagion, trade-war concerns and U.S. monetary tightening, says Eugene Leow, a fixed-income strategist at DBS in Singapore

** Still, valuations appear attractive and when the global outlook improves, there will be scope for Asian rates to outperform

* Industrial output +1.4% in July y/y: Bloomberg survey before data due at noon local time

* Foreign-exchange reserves rose 0.2% to $104.4b from $104.2b in the final two weeks of August, central bank said Thursday