U.S. dollar against the Malaysian ringgit exchange rate comment September 6, 2010

U.S. dollar against the Malaysian ringgit exchange rate comment September 6, 2010
USD/MYR likely to continue bear trend as Bank Negara Malaysia looks relaxed about stronger MYR given broad Asia FX strength vs USD. Stronger-than-expected Aug exports confirm robust fundamentals under pinning MYR gains. Malaysia''''s rate-hike pause unlikely to last long as rates may have to rise again to contain rising inflation, says Capital Economics. BNM may lift rates further 'towards the middle of the 3%-4% neutral range by mid-2011,' says firm; tips USD/MYR at 3.1000 by year-end. Dow Jones technical analysis shows initial support at 3.1085 (Friday''''s low), then 3.1020 (Fibonacci projection). Initial resistance at 3.1550 (Aug 19 high), above at 3.1900 (Aug peak).