KUALA LUMPUR (Mar 1): Ringgit falls for a third day as the dollar extends gains and energy prices lose further ground.
* USD/MYR climbs 0.2% to 3.9240
** Support 3.8663, 3.8465, 3.8170; resistance 3.9430, 3.9670, 4.0055
** BBDXY +0.1%; Brent crude -1%
* Stronger dollar and lower oil prices are weighing on the ringgit but BNM’s pre-emptive interest-rate hike in January will provide some buffer for MYR, says Vishnu Varathan, head of economics and strategy at Mizuho Bank in Singapore
** Sentiment may also be helped by govt’s plan to shut state investment fund 1MDB
** NOTE: 1MDB Chairman Irwan Serigar Abdullah said the fund will be closed after debts are paid with revenue from government projects, New Straits Times reported Wednesday
* January CPI +2.7% y/y vs est. +2.8% and +3.5% in December, official data showed Wednesday
* February manufacturing PMI 49.9 vs 50.5 in January: Nikkei and Markit Economics
* Malaysia’s GDP may expand 5.4% this year, according to economists surveyed by Bloomberg, higher than the 5.2% estimated earlier. That compares with 5.9% last year
* Credit Agricole recommends a cautious stance toward emerging markets in the days ahead as seemingly more hawkish rhetoric from Federal Reserve Chair Jerome Powell could raise short-term concerns, strategists led by Sebastien Barbe wrote in note Wednesday
* Environment remains supportive in the medium term; focus in Asia will be on China’s economic targets and the appointment of a new PBOC governor: note