Ringgit in range as rising oil counters geopolitics

Ringgit in range as rising oil counters geopolitics
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KUALA LUMPUR (April 12): Ringgit trades in a narrow range as geopolitical tensions limit the positive impact from higher energy prices.

* USD/MYR weakens 0.1% to 3.8712, lower end of range which extends to 3.8725

** Support 3.8465, 3.8000, 3.7310; resistance 3.9005, 3.9290, 3.9313

** Brent crude steady after touching $73.09 Wednesday, highest since November 2014

** NOTE: U.S. is weighing options for military action against Syria

* Ringgit is expected to remain supported heading into next month’s general election, thanks to buoyant oil prices and lower U.S. yields, says Vishnu Varathan, the head of economics and strategy at Mizuho Bank

** Tail risks to watch for include a geopolitical crisis and the loss of the ruling coalition in the election, although the odds of that are low

* Ringgit may record “modest gains” of up to 1.5% if the ruling coalition wins, according to note from Maybank on Wednesday * 10-year govt bond yield ended down 1bp at 3.96% Wednesday

* Auction of RM2.5b of 2037 Islamic govt bonds closes at 11:30am local time

* Govt has declared May 9 as a holiday for the general election, according to the state news agency Bernama

* Industrial production +3% in February y/y vs est. +3.3%, official data showed Wednesday

* New Zealand is investigating alleged dumping of steel from Malaysia and China