Risk assets and oil prices may be hit, taking down currencies of commodity producing countries, especially the Russian ruble, Colombian peso and ringgit, according to Bloomberg.
KUALA LUMPUR: Ringgit slides to its lowest level since November as Asian EM currencies weaken amid risk aversion sparked by turmoil in Turkey’s financial markets.
* USD/MYR rises 0.1% to 4.0915; climbed to as high as 4.0980 earlier
* The Turkish crisis will have biggest impact on EM economies with twin deficits or those lacking proactive central bank policies, says Vishnu Varathan, head of economics and strategy at Mizuho Bank in Singapore
** If USD/MYR rises above 4.10, the next key level to watch would be 4.15
* 10-year govt bond yield ended down 1bp at 4.04% on Friday
* Nomura cuts estimate for Malaysian 2Q GDP growth to 4.7% from 5% on slowing factory-output growth and falling crude palm oil output
* Note: Bloomberg survey forecasts data due Thursday will show 2Q GDP +5.3% year-on-year, slowest since 4Q 2016
* Note: Construction-services sector and building materials will be exempt from sales and services tax to help ease pressure on house prices as well as industrial and commercial buildings: Finance Minister Lim Guan Eng said
* Note: Malaysia will conduct a probe into missing RM18bil of goods and services tax refunds: Finance Minister - Bloomberg
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