Halister News

(Bloomberg) -- Ringgit extends gains after announcement of new BNM governor late yesterday is seen as a mkt-friendly appointment.

• Expect to see continuity in the management of monetary policy, and don’t expect a shift in current monetary policy framework, Goldman Sachs write in note received today
  • New governor is a career central banker and has worked closely with Zeti for almost 6 years
  • Test for new governor will come more from financial stability management
• Outgoing governor Zeti says Muhammad Ibrahim’s inclusion in central bank’s policy team will provide continuity and much needed certainty in “this prevailing period of great uncertainty”, according to e-mailed statement on April 27
• Incoming governor Muhammad Ibrahim pledged to maintain policy stability
• Ringgit gains 0.4% to 3.8975 per USD after climbing 0.3% yday
• USD/MYR 1-month NDF steady at 3.9012; above 21-DMA at 3.8958
• USD/MYR consolidating above near term base at 8-month low
  • Resistance: 3.9520, April 26 high; 3.9625, April 18 high; 3.9757, March 30 high
  • Supports broken at 3.9002, April 26 low and 3.8965, April 22 low; next support at 3.8503, April 20 low
• Five-year credit-protection costs for Malaysia rose yesterday by 1 bp to 163.5 bps, highest daily close since March 28, according to CMA New York data
• Malaysia to sell MYR3b of 7-year bonds today
• Yield on 3.955% govt bond due Sept. 2025 closed yesterday 4 bps higher at 3.890%