Ringgit falls to weakest this year on China concern

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KUALA LUMPUR (July 27): Ringgit drops to the year’s low amid concern China’s economy will be hurt by a trade war and as traders await U.S. GDP data that may support the case for further Federal Reserve tightening.

* USD/MYR advances 0.3% to 4.0720 after reaching 4.0725, highest since Dec. 28

** Support 4.0413, 4.0133, 4.0083; resistance 4.0761, 4.0817, 4.0883

* CNH has led losses in Asian FX this week even as govt announced series of measures to support growth 

* If ringgit weakens past 4.0750/USD, next level to watch would be 4.0900-4.1000, and this offers a buying opportunity as local yields are attractive while UST yields are peaking, says J. Suresh Sundaram, FX strategist at CIMB in Kuala Lumpur

** CNH may also recover as China takes steps to address growth concerns, and this would lend support to MYR

* Malaysia’s 10-year bond yield drops 3bps to 4.08%

* Govt will auction RM3b of 2025 govt bonds, closing at 11:30am local time

* Resignation of sovereign wealth fund Khazanah Nasional’s board was a wise move as it allows PM Mahathir to decide on appointments: Finance Minister Lim Guan Eng

* Chinese Foreign Minister Wang Yi will meet Mahathir on Tuesday on his way to meetings in Singapore with Asean foreign ministers: South China Morning Post