Ringgit heads for ninth weekly loss amid EM selloff

-A +A

KUALA LUMPUR (Aug 17): Malaysia’s ringgit drops for a ninth week, the longest losing streak in almost three years, as geopolitical tensions weigh on emerging-market assets. GDP for 2Q will be published at noon.

* USD/MYR has gained 0.4% this week to 4.1030 after reaching 4.1055 on Thursday, highest since November; pair is little changed Friday

** Support 4.0443, 4.0413, 4.0083; resistance 4.1093, 4.1230, 4.1355

* U.S. Treasury Secretary Steven Mnuchin said on Thursday Turkey would face more sanctions if it doesn’t release a detained American pastor

* Risk appetite took a hit on U.S. warning about further sanctions on Turkey, and it’ll be difficult for Asia ex-Japan FX to sustain a meaningful rebound, says Christopher Wong, a senior FX strategist at Maybank in Singapore

** Markets are awaiting U.S. public hearing on tariffs and gathering of central bankers at Jackson Hole, both due next week

* Malaysia’s 10-year bond yield little changed Friday at 4.07%

* GDP growth probably slowed to 5.2% y/y in 2Q, least since 4Q16: Bloomberg survey before Friday’s data

** 2Q current-account surplus also due Friday: forecast at RM12b vs RM15b in 1Q

* Malaysia will sell or reduce its stake in companies to raise funds to narrow a fiscal shortfall left by previous govt, PM Mahathir was quoted by The Malaysian Reserve as saying