KUALA LUMPUR (Jan 15): The ringgit rises to an 18-month high as the dollar weakens and data confirms Malaysia’s economic upswing is gaining strength.

* USD/MYR falls 0.3% to 3.9585, lowest since July 2016

** Support 3.9386, 3.9300, 3.9038; resistance 4.0465, 4.0965, 4.1086

* Malaysian industrial production rose a bigger-than-expected 5% in Nov. y/y, fastest in 3 months, data showed last week

* USD/MYR may head toward 3.75 after breaching key technical level of 3.98, says Stephen Innes, head of trading for Asia Pacific at Oanda in Singapore

** Ringgit will benefit from higher energy prices and FDI from China’s Belt and Road Initiative

* MYR may strengthen toward 3.95 and 3.9350 as Malaysia’s general election approaches and domestic fundamentals remain strong, Maybank analysts led by Saktiandi Supaat write in note

** BNM policy decision on Jan. 25 will probably be a non-event as no policy moves are expected

* Higher commodity prices will benefit the ringgit but the currency’s outlook is clouded by political uncertainties, investor Jim Rogers said, according to a report in The Edge Financial Daily

* UBS Asset Management says it has cut its long positions in the ringgit, Thai baht, Singapore dollar and Chinese yuan, although MYR and THB remain attractive in the long term as the respective economies are doing well

* Malaysia’s 10-year yield fell 3bps last week to 3.84%, lowest close since September

* Abu Dhabi’s Mubadala Investment says it’s about to make final investment decision on big gas discovery in Malaysia