Monday 20 May 2013

INSIDE MALAYSIA: Ringgit Declines for Day 4; RBS Sees Lower MYR


INSIDE MALAYSIA: Ringgit Declines for Day 4; RBS Sees Lower MYR

By Yidi Zhao

May 20 (Bloomberg) -- Ringgit falls 0.1% to 3.0238 per dollar, pivot point at 3.0183; resistance at 3.0106, 2.9978, 2.9773; support at 3.0311, 3.0388, 3.0593.

* Issue facing Malaysian policymakers is managing growth in range of 5-6% in face of harder fiscal constraint and weaker exports, yet monetary easing can not be a solution, Royal Bank of Scotland analyst Sanjay Mathur says in note

* Authorities will need to facilitate weaker currency by either increasing intervention or simply allowing currency to adjust in line with underlying export momentum: Mathur

* Ringgit at 3.10-12 by end-year, Mathur says separately in interview

* There is scope for USD/MYR to play further catch up to upside, Westpac says in note; recommends buying dips back to 3.00/3.01 and look for move to 3.08 over coming weeks

* USD/MYR’s 50-DMA at 3.0535 crosses both 100-DMA at 3.0635 and 200-DMA at 3.0668

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