Ringgit halts five-day gain as dollar rebounds

Ringgit halts five-day gain as dollar rebounds
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KUALA LUMPUR (Jan 26): Ringgit halts five-day advance as the dollar rebounds after U.S. President Donald Trump said he wants to see a strong greenback.

* USD/MYR rises 0.1% to 3.8880; pair fell 1.8% over last five days

** Support 3.8855, 3.8465, 3.8170; resistance 4.0055, 4.0465, 4.0524

** Bloomberg Dollar Spot Index up 0.1%, adding to similar gain Thursday

* SEB expects ringgit to strengthen to 3.70 per dollar by year-end, says Sean Yokota, head of Asia strategy in Singapore

** Sees BNM delivering another interest-rate hike in 3Q as inflation quickens and higher commodity prices boost the Malaysian economy

** NOTE: BNM raised the overnight policy rate by 25bps Thursday, the first increase since 2014

* USD/MYR is likely to fall to 3.80 in 12 months as rising crude prices, supportive fiscal policy and increasing investment support the Malaysian economy, according to a note from Credit Suisse Thursday

** Expects BNM to keep policy rates on hold for the rest of the year

* 10-year yield fell 2bps to 3.92% Thursday

* Auction of RM2.5b of 2033 govt bonds closes at 11.30am local time

* Sovereign wealth fund Khazanah Nasional plans to increase the proportion of overseas investments as the rate of return is higher than domestic assets: Managing Director Azman Mokhtar