Ringgit strengthens after biggest loss in six weeks

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KUALA LUMPUR (Sept 18): Ringgit rises after posting its biggest daily loss in six weeks on Tuesday, as an overnight decline in the dollar and a partial resumption of production at Saudi Arabia’s damaged oil plant help improve sentiment. Trading is range-bound ahead of the Federal Reserve’s interest-rate decision.

* USD/MYR falls 0.1% to 4.1785 vs range of 4.1750-4.1788; pair gained 0.4% on Tuesday

** Support 4.1591 and 4.1593, 4.1460, 4.1240; resistance 4.2020-4.2028, 4.2297, 4.2440

** Bloomberg Dollar Spot Index little changed after falling 0.2% on Tuesday

* Macquarie Bank is bearish on MYR due to weak global growth and risks including the trade war and FTSE Russell’s upcoming decision on Malaysian bonds, says Trang Thuy Le, an Asia FX strategist in Hong Kong

** If FTSE drops Malaysia from its index, USD/MYR may rise to 4.25 by end-3Q. If Malaysia is kept on the watch list for another 6 months, pair may climb to about 4.20 by end-September

* 10-year govt bond yield steady at 3.36%

* Auction of RM3b of 2026 govt bonds closes Thursday