Ringgit falls as Korean tensions hurt sentiment

Ringgit falls as Korean tensions hurt sentiment
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KUALA LUMPUR (Aug 9): Ringgit extends decline in line with losses in Asian currencies as tensions surrounding North Korea escalate.

* USD/MYR gains 0.1% to 4.2878

** Support 4.2760, 4.2663, 4.2505; resistance 4.3022, 4.3055, 4.3217

* ANZ sees upside risk for USD/MYR in 2H as Malaysian GDP growth softens while the current-account surplus is likely to moderate to 2% of GDP, says Khoon Goh, Singapore-based head of Asia research

** Outflows from Malaysian bonds may resume if global yields rise

** USD/MYR is expected to end this year at 4.31

* USD/MYR shows mild bullish momentum with stochastics remaining on the uptick from oversold conditions, Maybank analysts led by Saktiandi Supaat wrote in note Tuesday

** Pair may trade in a range of 4.2700–4.2850 the week ahead

* MYR may climb to 4.26/USD by year-end, supported by Malaysia’s FX reserves which are at a 2-year high, Julia Goh, economist at United Overseas Bank, wrote in a note Tuesday

* Malaysia is among several oil producers to affirm its commitment to cut oil output at a meeting in Abu Dhabi: OPEC

* State investment company 1MDB gets extension to pay more than $600m to an Abu Dhabi sovereign wealth fund after missing a deadline last month

* Stock exchange operator Bursa Malaysia is considering whether to allow companies to offer dual-class share structures