Ringgit climbs to 18-month high as USD wobbles

Ringgit climbs to 18-month high as USD wobbles
-A +A

KUALA LUMPUR (Jan 17): Ringgit advances to an 18-month high as the broad dollar extends its losses and energy prices gain.

* USD/MYR declines 0.3% to 3.9472; reached 3.9435, lowest since July 15 2016

** Support 3.9418, 3.9300, 3.9038; resistance 4.0465, 4.0965, 4.0924

** Bloomberg Dollar Spot Index falls for a sixth day

* With pair below 3.95, next target is 3.9350 and near-term rallies are likely to be capped at around 3.9920, says Peter Chia, a currency strategist at United Overseas Bank in Singapore

** BNM will probably raise interest rates next week but keep policy guidance for the next move neutral, and this will limit any further gains in the ringgit

* Malaysian stocks may benefit from China partnerships, as reflected by the increased returns from companies with investments or partnerships with Chinese counterparts: Citi 

* Data due next week include December inflation and foreign-exchange reserves as at mid-Jan