20 Feb 23:56 GMT USD/MYR may switch direction tdy following speculation the Fed is slowly shifting out of easing mode despite the M'sian economy growing faster than expected in Q4 expanding 6.4% y/y, beating 5.5% y/y f/c. Jan CPI rose 1.3% y/y, up slightly from 1.2% f/c.
The broad dollar soars as FOMC minutes indicated that Fed policy makers would consider changes to the open ended QE3 program at the March meeting. The local pair may recapture 3.10 handle again as KL shares may extend losses following slumps in US stocks o/n. However, topside should be limited after upbeat Q4 growth and which helped the local economy expand 5.6% for the full year, higher than the 5.1% registered in 2011 vs the official f/c of 4.5-5.0% for 2012.
The spot traded btwn 3.0905/3.1000; 1mth offshore MYR NDF ranged 3.1010/60 and closed 3.1035/55 in Asia. Some spread business went thru yday: 1m x 2m dealt at +62, 2m x 3m dealt at +53, 1m x 3m dealt at +115 and 1y x2y dealt at +550.
The local bourse closed -0.11% to 1,613.33 points dragged down on losses by blue chips.
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