Thursday 28 Mar 2024
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SINGAPORE (Oct 1): Ringgit is steady following its first back- to-back quarterly decline since 2016 as investors continue to assess the impact of a rising dollar and U.S. interest rates on emerging markets.

* Maybank lifted its quarterly forecasts for USD/MYR and now expects the pair to climb to 4.12 in 4Q vs its previous projection of 4.07, according to note on Friday

** Sees commodity currencies remaining vulnerable, citing demand for USD amid the risk of a possible global trade war, continuing Fed policy normalization and repatriation of corporate earnings

** Sees rising likelihood of BNM keeping rates on hold until 2019 to support domestic demand, especially consumer spending

** Still expects USD/MYR to fall to 4.08 in 2Q 2019 on sustained current account surplus, rising FX reserves and pickup in economic growth

* USD/MYR steady at 4.1385 after gaining 2.5% in 3Q and 4.5% in 2Q

* Nikkei manufacturing PMI climbed to 51.5 in September from 51.2 in August

** Reading is highest since November

** Gain was driven by a stronger rise in employment, according to statement from IHS Markit

* Yield on 10-year govt debt dipped 1bp to 4.07% on Friday, according to central bank data

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