KUALA LUMPUR (March 21): Ringgit falls for a third day as overnight gains in the dollar outweigh a rally in crude prices. Traders are also awaiting Malaysia’s February inflation data.

* USD/MYR climbs 0.1% to 3.9235

** Support 3.8857, 3.8663, 3.8465; resistance 3.9241, 3.9313, 4.0055

* CPI is expected to rise 1.9% in February y/y, slowest since December 2016, according to the median estimate of a Bloomberg survey before data due at noon local time

* Ringgit will probably be rangebound Wednesday, along with regional peers, as markets await the Federal Reserve’s rate decision and guidance on policy outlook, says Angus Salim Amran, head of financial markets at RHB Investment Bank in Kuala Lumpur

** Malaysia’s February inflation print is likely to come in within expectations

* Foreign-exchange reserves data for mid-March due Thursday

* Negotiations on Saudi Aramco’s investment in a Petronas project have been concluded, Bernama reports, citing Malaysia’s Minister in the Prime Minister’s Department Abdul Rahman Dahlan. Expects $7b investment to come in by month-end: Abdul Rahman

* Yield on govt bonds due November 2027 rose 2bps to 3.97% Tuesday

** Govt to auction RM2.5b of 2033 Islamic bonds Thursday

* Morgan Stanley remains cautious on emerging markets, strategists including James Lord wrote in a note Tuesday

** EM FX is more correlated than usual with U.S. equities, suggesting that global risk conditions remain key for the near-term outlook