Ringgit climbs for first time in four days ahead of data that may show an acceleration in Malaysia’s factory output growth.
* Govt to auction RM3b ($768.5m) of 2025 notes Tuesday
* Industrial production +6.5% in January y/y vs +2.9% in December: Bloomberg survey ahead of data due Tuesday
** Brown Brothers Harriman expects a 7.7% rise amid steady economic growth and easing price pressures, strategists led by Marc Chandler wrote in a report received Sunday
** “We do not think Bank Negara will hike aggressively and so we see steady rates for much of 1H,” according to the report
** Expects no change at next meeting on May 10
* USD/MYR drops 0.2% to 3.9040
** Support 3.8857, 3.8663, 3.8465; resistance 3.9313, 3.9431, 4.0055
* USD/MYR is likely to rise to 3.95 in the coming months with BNM expected to hold off on a further interest-rate increase until the end of the year, says Trinh Nguyen, a senior economist at Natixis SA in Hong Kong
** Malaysia’s monetary conditions have tightened following BNM’s rate hike in January and inflation will probably drop below 2% in February and remain contained in 2Q
* Yield on govt bonds due November 2027 falls 1bp to 3.98%
