Ringgit climbs towards 6-month high on oil rally

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KUALA LUMPUR (Feb 20): Ringgit advances toward the strongest in six months as buoyant crude prices improve the outlook for Malaysian government finances.

* USD/MYR drops 0.2% to 4.0722 after falling to 4.0618 on Feb 14, lowest since August

** Support 4.0676, 4.0550, 4.0435; resistance 4.1045, 4.1297, 4.1481

** Brent climbed to US$66.83 a barrel on Monday, highest since November

* EM FX are likely to consolidate in the short term, as a dovish Fed and rangebound UST yields counter broad dollar strength, says Marcus Wong, a strategist at CIMB Bank in Singapore

** Market has priced in a likelihood that US-China trade talks will be extended beyond the March 1 deadline, and if the two sides reach an agreement that would spur a rally in risk assets

* Malaysia’s 10-year bond yield climbs 1bp to 3.90%

* Govt will sell 15-year Islamic bonds by the end of February, according to auction calendar

* China is willing to reduce the US$20 billion price tag for the East Coast Rail Link project in Malaysia and talks are “in the last mile,” Malaysia’s Foreign Minister Datuk Saifuddin Abdullah said Tuesday