Friday 29 Mar 2024
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KUALA LUMPUR (Jan 12): Ringgit rises to its strongest in almost 18 months as the dollar extends losses on lower Treasury yields and crude prices hold gains.

* USD/MYR falls 0.4% to 3.9735; reached 3.9722, lowest since July 18 2016

** Support 3.9387, 3.9300, 3.9038; resistance 4.0465, 4.0965, 4.1086

* USD/MYR’s recent decline has been more gradual than in early 2016 and pair will see “huge psychological support” at around 3.86 level, says Wu Mingze, a foreign-exchange trader at INTL FCStone in Singapore

** With MYR hovering around 4 per USD and dollar continuing to look weak, there’s little pressure for BNM to tighten policy to defend the ringgit and any rate hike will be purely from an economic perspective

** NOTE: BNM to review policy on Jan. 25

* 10-year bond yield fell 2bps to 3.87% Thursday, lowest since September

* Auction of RM4b 2022 Islamic government bonds closes at 11:30am local time

* Portfolio flows into EM assets rose to $4.7b for the week ended Jan. 5 from $2.5b the previous week, according to Credit Agricole’s indexes based on 27 countries

** Of the total flows, equity accounted for $4.3b while bond inflows were almost flat at $0.4b

 

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