SINGAPORE (July 9): Malaysian ringgit drifts lower versus dollar for a third day as investors wait on Bank Negara Malaysia’s rate decision later Tuesday.

* USD/MYR +0.1% to 4.1423 as it continues to consolidate near-term around currency pair’s 200-DMA

* BNM is expected to leave its overnight policy rate unchanged at 3.00% according to 25 of 28 economists in Bloomberg survey, with 3 predicting a cut of 25 bps; decision due 3pm local time

* “We expect the BNM to keep the overnight policy rate unchanged at 3%, after having cut by 25bps at its May meeting,” says Divya Devesh, head of Asean and South-Asia FX research at Standard Chartered Bank in Singapore

** While downside risks to growth remain, the May cut was pre-emptive; expects the central bank to remain watchful

** Maintains USD/MYR forecasts at 4.15 for end-2019 and 4.20 for mid-2020. Expects currency pair to remain range-bound amid several cross-currents

* Bank Negara Malaysia may cut its overnight policy rate by 25 bps to 2.75% on July 9, writes Bloomberg Economics. Weak 1Q growth and scope for further slippage into year-end provide scope for further easing

* Loan approvals in May increased 13% from previous month after central bank cut its benchmark interest rate to 3%, Deputy Finance Minister Amiruddin Hamzah says

* Malaysia will relaunch the shortened East Cost Rail Link later this month and local contractors will be able to bid for the 40% civil works portion of the project, NST reports, citing Transport Minster Anthony Loke

* Malaysia’s 10-year govt bond yield rose 1bp to 3.64%