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Malaysia: Ringgit falls to 2018 low as Asia currencies weaken
KUALA LUMPUR: Ringgit declined to its lowest level this year on Tuesday as most Asian emerging markets currencies trade weaker amid concerns over an intensifying US-China trade war and following the dollar’s advance overnight.
* US$/Ringgit climbs as much as 0.2% to 4.0860, highest since Dec. 27.
* Support 4.0413, 4.0267, 4.0083; resistance 4.0883, 4.0920, 4.1093
* Bloomberg Dollar Spot Index steady after rising 0.2% Monday.
While sentiment toward China’s yuan remains bearish, concern that the currency may rise above 7 to the dollar has eased after the PBOC raised the reserve requirement on FX forwards trading, says Ken Cheung, a senior Asian FX strategist at Mizuho Bank in Hong Kong.
That’s lent modest support to Asian FX; stronger US$ and lingering trade war concerns are near-term risks for EM forex.
* Malaysia foreign-exchange reserves data for end-July due at 3pm; no forecast, holdings were at US$104.6bil as of July 13.
* 10-year govt bond yield drops 1bp to 4.03%, falling for a second day.
* Govt sold 2037 Islamic bonds to yield 4.768% at auction Monday, with bid-to-cover ratio of 2.11 times
* Malaysia recorded a budget deficit of RM40.3bil, equivalent to 3% of GDP, last year: National Audit Department
* Malaysia considers selling super yacht to return funds to public
* Malaysia had “very positive” informal talks with Singapore on high-speed rail project connecting the city state to Kuala Lumpur: Minister for Economic Affairs Azmin Ali said Monday. – Reuters
Source: https://www.thestar.com.my/business/business-news/2018/08/07/ringgit-falls-to-2018-low-as-asia-currencies-weaken/#RESwztfFWZ1UrdeX.99