Sunday 04 Jun 2023
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KUALA LUMPUR (April 26): Malaysia’s ringgit drops to the lowest in five weeks as U.S. Treasury yields near a four-year high weigh on Asian currencies.

* USD/MYR climbs 0.2% to 3.9198 after touching 3.9200, highest level since March 23

** Support 3.8465, 3.8000, 3.7310; resistance 3.9313, 3.9430, 3.9488

** BBDXY holds near a 3-month high reached on Wednesday

* U.S. 10-year above 3% are spurring concern that capital may be set to leave EM Asia, says Ken Cheung, Asian currency strategist at Mizuho Bank in Hong Kong

** Focus is also on higher oil prices which could worsen the trade deficit for net energy importer countries, and also on the Korean summit Friday which is expected to ease geopolitical

* 10-year govt bond yield climbs 1bp to 4.19%

* Govt will auction RM4b of 2028 Islamic bonds Friday

* Malaysian bonds could come under pressure due to the high share of foreign holdings if investors start selling EM local debt: BlueBay Asset Management

* 5-day moving average of net foreign inflows into Malaysia stocks dropped to $10.6m in the past week, below the 20-day average of $13.4m: data from Bursa Malaysia compiled by Bloomberg

* PM Najib Razak said he’ll progressively cut corporate and personal income tax in the next 5 years as the nation gears up for next month’s election

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