HALISTER1: INSIDE MALAYSIA: Ringgit Slides With EM Currencies, Yields Jump

INSIDE MALAYSIA: Ringgit Slides With EM Currencies, Yields Jump

(Bloomberg) -- Ringgit at weakest since January, sliding with other emerging market currencies, as the dollar surged on wagers that Donald Trump as U.S. president will boost spending and stoke inflation.
  • Ringgit drops as much as 1.7%, and now trades 1.4% lower at 4.3300 per dollar
  • Yield on 3.9% govt bond due Nov. 2026 rose 15bps on Thursday, most since issue date on May 24, to 3.809%, according to Bursa Malaysia prices
  • Malaysia 3Q GDP seen at 4%, same as 2Q: Bloomberg survey, data due at 12pm local time
  • MYR 5-yr swaps now at 3.625%, may extend gains beyond 200- DMA at 3.617%, which it crossed on Thursday for first time since January; click here for chart
  • Momentum studies bullish; slow stochastics %K rising at 74, MACD above signal and zero lines
  • 5-year credit-protection costs for Malaysia rose 8bps, most since Sept. 20, to 136bps on Thursday, highest daily close for three months, according to CMA New York data
  • NOTE: Mark Cranfield is an FX strategist who writes for First Word. The observations he makes are his own and are not intended as investment advice.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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