KUALA LUMPUR (June 10): Ringgit falls for the first time in six days, tracking a decline in the yuan after China’s central bank chief indicated the authorities may tolerate a weaker currency. EM currencies are also weighed down by dollar strength.
* USD/MYR gains 0.1% to 4.1640 after declining 0.8% in previous five sessions
** Support 4.1413, 4.1252; resistance 4.2028, 4.2437, 4.2535
* Pair’s uptrend from 4.06 to 4.20 is intact on a technical perspective as long as it stays above 4.14 to 4.15, says Mingze Wu, a foreign-exchange trader at INTL FCStone Global Payments in Singapore
** Next key level is 4.15 psychological level, with top side seen at 4.20
* Nation’s 10-year bond yield falls 1bp to 3.70%
* Malaysia has benefited from the US-China trade war through trade diversion and business relocation, Finance Minister Lim Guan Eng said Friday
* Industrial production probably increased 2.5% in April y-o-y vs +3.1% prior, according to Bloomberg survey before data due Tuesday