HALISTER1: INSIDE MALAYSIA: MYR Up; Goldman Accused of Currying PM’s Favor

INSIDE MALAYSIA: MYR Up; Goldman Accused of Currying PM’s Favor

(Bloomberg) -- Ringgit gains vs dollar in line with other Asian peers after overnight drop in Dollar Index and Treasuries were mixed.
  • Goldman Sachs accused in a lawsuit of selling out a client to curry Malaysian PM’s favor
  • 1MDB says it’s looking for new auditor after Deloitte previously notified co. in Feb. of intention to resign: statement yday
  • Ringgit advances 0.1% to 4.0595 per dollar, according to onshore prices
  • USD/MYR -- consolidating above 50-DMA
    • Resistance: 4.0920, Jul 25 high; 4.1105, 76.4% Fibo retracement of drop from June 24 to July 15; 4.1272, June 28 high
    • Support: 4.0580, 50-DMA; 4.0192, 100-DMA; 3.9919, 61.8% Fibo retracement of July range
  • Blackrock sees opportunity in select local currency bond markets where yields remain attractive and where there is room for monetary easing like Malaysia, India, and Indonesia, according to note on July 26
    • Prefers investment grade over high yield, and sees opportunities in India, Indonesia, HongKong and Australia
  • Yield on 3.9% govt bond due Nov. 2026 slid 16 bps to 3.505% yday, according to Bursa Malaysia prices, that’s the biggest drop in benchmark 10-yr yield since Sept. 30
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Topics
Government Appointments, Political Changes

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