KUALA LUMPUR (March 7): Ringgit consolidates after five days of losses as traders await monthly fund-flow data to see if overseas demand for Malaysian bonds recovered in February.

* USD/MYR down 0.1% at 4.0868; pair rose 0.7% in previous five sessions

** Support 4.0550, 4.0435, 4.0083; resistance 4.1045, 4.1081, 4.1409

* Central bank expected to release February fund-flow figures by end of day

** Foreign holdings of govt and corporate bonds and bills fell to RM182.5b in January, the lowest since March 2017

* Recent Malaysian govt bond auctions have drawn strong demand, suggesting overseas investors may have increased their allocation in ringgit debt, says Lawrence Lai, strategist at Standard Chartered Bank in Singapore

** Latest FOMC statement could fuel demand for EM assets, especially local-currency debt, given the weaker USD outlook, low UST yield environment and potential pause in Fed balance-sheet reduction

* Malaysia’s 10-year bond yield was steady at 3.89%

* Auction of RM3b of 2022 govt bonds closes at 11:30am local time

* Recent oil-price rally has helped sustain ringgit’s valuations in an environment where the economy lacked clear drivers, Morgan Stanley strategists led by James Lord wrote in note Wednesday

** BNM’s acknowledgement of risks to growth in policy statement has made the central bank more likely than regional peers to cut rates

** MS remains neutral on Malaysian FX and rates

* Foreign-exchange reserves data for end-February due at 3pm local time; no forecast, holdings +0.2% to $102.3b in the first two weeks of February

* Malaysian banks’ asset risks are set to rise this year as economic condition worsens: Moody’s Investors Service * Market regulator Securities Commission is seeking public feedback on proposed rules relating to initial coin offerings and property crowdfunding