INSIDE MALAYSIA: Ringgit Falls; Inflation Seen Fastest in 8 Mos

By Yanping Li

March 20 (Bloomberg) -- Ringgit declines 0.2% to 3.1302 per dollar before data due out at 5pm today which economists surveyed by Bloomberg say will show consumer prices rose 1.5% Y/y in February, fastest pace since June.

* Nomura expects Malaysia’s inflation to quicken, driven more by strong demand rather than cost side; Barclays says inflation looks set to remain range-bound amid low food inflation and falling fuel prices

* Malaysian Prime Minister Najib Razak said nation may reach high-income status two years ahead of target, as he seeks to convince voters of his economic achievements before elections due within weeks

* Malaysia to release central bank’s annual report today

* 1-mo. implied volatility jumps 8 bps to 7.3500%

* 12-month forwards little changed at 3.1891 per dollar

* Yield on 3.172% bonds due July 2016 rose 1 bp to 3.069% yesterday; yield on 3.48% notes due March 2023 little changed at 3.482% yesterday

* Bank Negara to sell 1.5b ringgit 364-days note, 1b ringgit 63-days Islamic note and 1b ringgit 126-days Islamic note today