KUALA LUMPUR (March 19): Ringgit weakens with most other Asian currencies before a Federal Reserve meeting this week where policy makers are expected to raise interest rates.

* USD/MYR advances 0.2% to 3.9140

** Support 3.8857, 3.8663, 3.8465; resistance 3.9278, 3.9313, 4.0055

** Bloomberg Dollar Spot Index edges higher after gaining 0.2% last week

* Pair is likely to trade in a range of 3.88-3.94 this week with oil prices and UST yields the key drivers, says Masashi Murata, a currency strategist at Brown Brothers Harriman in Tokyo

* Malaysian CPI probably rose 2% in Feb. y/y vs +2.7% in Jan.: Bloomberg survey before data due Wednesday

* BNM doesn’t have an explicit inflation target and contained price pressures should allow it to remain on hold at the next meeting on May 10, BBH strategists led by Marc Chandler wrote in
report received Monday

* Yield on 10-year bonds little changed at 3.95%

* Govt to auction 3-year and 15-year notes this month: central bank website

* EM assets saw $800,000 of portfolio inflows in week ended March 9 vs $4.5b of outflows the previous week, according to Credit Agricole indexes tracking 27 countries

** Bonds saw $1.9b of inflows, while equity markets recorded $1.2b of outflows, strategist Guillaume Tresca wrote in March 16 note

** Outlook has improved due to relative stability of U.S. inflation and with the tariff trade issue under control, but this week’s Fed decision and uncertain global sentiment could cap rebound in portfolio inflows