Friday 19 Apr 2024
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KUALA LUMPUR (Jan 25): Ringgit climbs to highest in almost two years after the dollar tumbled and traders brace for Bank Negara Malaysia to raise interest rates.

* USD/MYR falls 0.3% to 3.9020; reached 3.8920, lowest since April 2016

** Support 3.9038, 3.8465, 3.8170; resistance 4.0055, 4.0465, 4.0583

** BNM will increase the policy rate by 25bps at Thursday’s review, according to 16 of 20 economists in a Bloomberg survey before decision due at 3pm local time

* Should BNM deliver a dovish hike, the market will probably ignore such a tone as the growth and inflation outlook continues to improve heading into the general election, says Andy Ji, Asia currency strategist at Commonwealth Bank of Australia in Singapore

* “The technical picture bodes well with further downside to USD/MYR, although muted capital inflows remain the Achilles’ heel for the domestic currency”

* Still, Goldman Sachs expects BNM to hold fire at Thursday’s review with a rate increase likely to take place only in 3Q after the general election, economists Goohoon Kwon and Irene Choi wrote in note Wednesday

** Expects no hike on Thursday as changes in wording of the policy outlook section of past decisions have not always signaled immediate rate changes 

* 10-year yield ended unchanged at 3.94% Wednesday

* Govt to auction RM2.5b of 2033 bonds on Friday

* Collections from Malaysia’s goods and services tax may reach RM45b in 2018 vs RM44b in 2017, New Straits Times cites PM Najib Razak as saying 

* Negotiators in the Comprehensive and Progressive Agreement for the Trans-Pacific Partnership have agreed to Malaysia’s request for extra flexibility in the upstream oil and gas sector: Trade and Industry Minister Mustapa Mohamed

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