Ringgit to move in range of 3.9714 – 3.9864 against USD today, says AmBank Research

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KUALA LUMPUR (May 24): AmBank Group Research expects the ringgit (MYR) to trade within its support levels of 3.9611 and 3.9714 while the resistance levels are to hover between 3.9864 and 3.9964.

In his AmBankFXDaily note today, AmBank group chief economist and head of research Dr Anthony Dass said the MYR fell 0.4% to 3.9823 against the stronger dollar.

He said the FBM KLCI shed 2.2% to 1,804.25 with a net foreign outflow of RM286.8 million.

Meanwhile, he said the 5-, 7- year Malaysian Government Securities yields remained unchanged at 3.870% and 4.035% respectively while the 10-year rose 1.5 basis points to 4.210%.

“Crude oil prices remained mix, with WTI down 0.6% to US$71.73/barrel and Brent up 0.9% to US$79.64/barrel after EIA announced that US’ crude inventories surged by 5.8million barrels and investors anticipate a possible increase in OPEC output that could cover the supply shortfalls from Iran and Venezuela.

“The MYR strengthened against regional currencies — the Singapore dollar by 0.2% to 2.9599, rupiah by 0.1% to 3,567.86 and baht by 0.09% to 8.0701 but weakened against peso by 0.07% to 13.1687. The 5-year CDS rose 0.41% to 83.51,” he said.