KUALA LUMPUR (Oct 2): Ringgit declines after the dollar rose and as global funds continue to sell Malaysian stocks. An overnight rally in crude prices offers little support.

* USD/MYR climbs 0.1% to 4.1423

** Support 4.1024, 4.0900, 4.0413; resistance 4.1535, 4.1645,
4.2437

** NOTE: BBDXY steady after gaining 0.1% Monday; Brent rallied to a 4-year high overnight

* Overseas investors pulled $422m from Malaysian stocks in 3Q, after offloading $2.26b in the previous 3 months

* EM Asian FX may come under further pressure this week, affected by broader dollar strength, says Christopher Wong, a senior FX strategist at Maybank in Singapore 

** EUR remains on the back foot amid concerns including Italy’s budget and Brexit discussions 

* MYR isn’t fully benefiting from higher oil prices as a stronger dollar and higher UST yields are weighing on sentiment, Stephen Innes, Oanda’s head of trading for APAC, writes in note

** Trading will likely be muted as liquidity in regional FX drops due to China’s Golden Week holiday

* 10-year govt bond yield increased 2bps to 4.09% Monday

* A high-speed rail project between Malaysia and Singapore should resume construction by May 31, 2020, Singapore’s Transport Minister Khaw Boon Wan said Monday

* Malaysia’s economic data due this week include August trade balance and foreign-exchange reserves for the final two weeks of September