Friday 29 Mar 2024
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KUALA LUMPUR (Sept 11): Ringgit drops from 10-month high as a broad rebound in the dollar, following a relatively uneventful North Korean founding day and a less-severe than feared hurricane Irma, weighs on emerging Asian currencies.

* USD/MYR rises 0.1% to 4.2000; reached 4.1825 Friday, lowest since Nov. 9

** Support 4.1825, 4.1733, 4.1442; resistance 4.2060, 4.2262, 4.2505

** BBDXY +0.2% after falling to lowest since January 2015 on Friday

* While concerns about geopolitical risks persist, improved data from China, euro zone, U.S. and Japan should lend some support to Asian FX in the short term until focus reverts to the Fed’s meeting this month, says Trinh Nguyen, senior economist for emerging Asia at Natixis in Hong Kong

** For the MYR, markets are looking at the timing of Malaysia’s general election and whether PM Najib will announce a date after his visit to the White House

** NOTE: Elections are not due until mid-2018 but there’s speculation Najib may call for early polls

* Hong Leong Investment Bank boosts its forecast for ringgit to 4.10-4.25 for rest of the year from 4.30-4.40, analysts Sia Ket Ee and Felicia Ling write in report

** Turned mildly positive on MYR after last week’s gains and amid a softer dollar and higher oil prices

* MYR should continue to strengthen as it remains cheap and basic balance of payments improves, Citigroup wrote in report Friday

* 10-year govt bond yield fell 2bps to 3.83% Friday, lowest since November 2016

* Factory output +5.1% in July y/y vs 4% June: Bloomberg survey ahead of data due at noon local time

** July manufacturing sales also due; no estimate, was +11.5% in June

* HK and Asean to sign free trade agreement in November: HK Trade and Industry department

** PM Najib said Friday there’s possibility of TPP agreement without the U.S.

 

 

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