HALISTER1: Buying MYR via Short-Dated Debt Still Has Legs: Deutsche Bank

Buying MYR via Short-Dated Debt Still Has Legs: Deutsche Bank

(Bloomberg) -- Deutsche Bank says its March 29 tactical recommendation on long ringgit exposure through short-dated Malaysian govt securities “still has some juice left,” strategists Swapnil Kalbande and Sameer Goel wrote in note Tuesday.
  • Recent liberalization in dynamic hedging regulations have partly helped sentiment, paving the way for ringgit to finally catch-up with peers
  • MYR remains cheap and is still lagging behind downtrend in USD/Asians this year
  • BNM may welcome a slightly stronger MYR to manage inflation and indicate confidence
  • Offshore investor positioning is considerably lighter after the big sell-down
  • NOTE: USD/MYR is -0.3% to 4.3145, approaching 200-DMA level which has not been tested since last October

Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Sameer Goel (Deutsche Bank AG)
Swapnil Kalbande (Deutsche Bank AG)

Topics
Emerging Mkts News, Analysis

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