KUALA LUMPUR (Feb 22): Ringgit slips, as risk assets from emerging market currencies to stocks are sold in Asia. January inflation figures are due.

* USD/MYR climbs 0.2% to 4.0850; it’s steady for the week

** Support 4.0675, 4.0550, 4.0435; resistance 4.1045, 4.1266, 4.1469

* Overseas investors snapped up $23.8m of Malaysian stocks in the first three days of the week

* USD/MYR may briefly test 4.05 if oil prices extend gains, although trading is likely to be centered around 4.08-4.10 range, says Vishnu Varathan, head of economics and strategy at Mizuho Bank Ltd. in Singapore

** BNM has scope to ease policy due to global growth risks, but subdued inflation doesn’t provide a compelling reason as price pressures will probably pick up in 2Q

* 10-year govt bond yield held at 3.89% Thursday

* Malaysia is in talks with China on a possible Panda bond offering: Finance Minister Lim Guan Eng

* CPI probably fell 0.4% in January y/y vs +0.2% in December: Bloomberg survey ahead of data scheduled for noon local time

* Foreign-exchange reserves data for mid-February also due; no forecast, holdings +0.4% to $102.1b in the two weeks ended Jan. 31