Ringgit snaps 2-day losing streak as USD falls

-A +A

KUALA LUMPUR (Sept 13): Ringgit halts two days of losses as the dollar weakens and Brent crude trades near a four-month high.

* USD/MYR trades little changed at 4.2067

** Support 4.1825, 4.1733, 4.1442; resistance 4.2262, 4.2505, 4.2787

** Bloomberg Dollar Spot Index declines 0.1%

** Brent falls 0.2% to $54.20, near $54.87 level reached last week, which was highest since late April

* A slight recovery in USD has weighed on EM Asian FX this week and traders will take their cue from U.S. stocks and the Chinese yuan, says Wu Mingze, a currency trader in Singapore at INTL FCStone

** Barring another major catalyst such as a rally in oil prices, MYR bulls may find it difficult to break 4.200 especially with USD/Asia gaining ground

* 10-year govt bond yield climbed 2bps to 3.86% Tuesday

* Govt to auction 4b ringgit of 2022 debt Thursday

* CIMB remains overweight MYR and Malaysian govt bonds and recommends focusing on Islamic sovereign debt for immediate trading gains

** Favors Islamic notes with 5-7 year maturities and sees up to 5bps of gains in the short to medium term