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