Published at 02:42 (GMT) 11 Jul
As expected, USD/MYR easily rose above 3.1800, tracking 1M NDF post-BNM short squeeze, as short covering bids emerged. BNM hiked OPR by 25bps to 3.25%, the first increase in over three years (Search MYR+BNM+Change). However buying interests appeared modest ahead of the weekend, with the spot rate touching 3.1855 highs as we write. There is more room for the run-up, as strong hurdle is only sighted at 3.1937. KLCI traded mildy lower in early Asia.
In M&A news, CIMB said BNM gave the green light for it to hold merger talks with RHB and MBSB, where the proposed merger includes creation of a mega Islamic bank. The three banks resume trading today, where RHB Capital and Malaysia Building Society shares jumped above MYR 9.00 (highest in over three years) and MYR 2.50 (highest since Oct 2013) per share respectively. BA
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