Monday 21 January 2013

INSIDE MALAYSIA: Ringgit Steady; Citi Likes Currency on Inflows 21 Jan 2013

 * Ringgit little changed at 3.0140 per dollar; pivot point at 3.0131; support at 3.0194, 3.0258, 3.0385; resistance at 3.0067, 3.0004, 2.9877.

  * Dollar's 14-day RSI is at 32, approaching oversold levels

  * Citigroup constructive on outlook for ringgit on back of improved outlook for capital flows, trade balance and FDI; rates will be range-bound this year as central bank may stay on hold for time being and consider stronger currency over other monetary-policy tools to curb any rise in inflationary
pressures

  * 12-month forwards drop 0.1% to 3.0686 per dollar

  * 1-month implied volatility falls 5 bps to 5.0215%

  * 1-year IRS retreats to 3.2050% from 3.2100% on Jan. 18; 5- year IRS unchanged at 3.5100%

  * Yield on 3.418% sovereign bonds due August 2022 had second weekly decline last week, dropping 2 bps to 3.467%

  * Bank Negara to sell 1b ringgit of 210-day notes, 1.5b ringgit of 126-day Islamic notes, 1.5b ringgit of 210-day notes and 2b ringgit of 63-day Islamic notes today

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