Ringgit to move in range of 3.9875 – 4.0071 against USD today, says AmBank Research

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KUALA LUMPUR (June 19): AmBank Group Research expects the ringgit (MYR) to trade between its support level of 3.9800 and 3.9875 while the resistance is between 4.0071 and 4.0131.

In his AmBankFXDaily note today, AmBank group chief economist and head of research Dr Anthony Dass said the MYR fell 0.3% to 3.9978 against the US Dollar partly on due to the risk-off sentiment in the global market.

He said the local bourse fell 1.0% to 1,743.43 with a net foreign selling worth RM238.8 million.

However, he explained that bond yields remained unchanged across the curve with the 5-, 7-, and 10-year Malaysian Government Securities at 3.870%, 4.060% and 4.230% respectively.

“The 5 year CDS fell 1.0% to 71.44. Meanwhile, crude oil i.e. WTI and Brent rose by 1.1% to US$65.79/barrel and 1.8% to US$74.78/barrel due to trade war jitter as China slapped import tariffs on US which includes crude oil products.

“Meanwhile, the MYR weakened against regional currencies such as peso by 0.2% to 13.3632, rupiah by 0.3% to 3,484.74 and baht by 0.3% to 8.1707 but strengthened against the Singapore dollar by 0.03% to 2.9574. The 5 year CDS rose 1.2% to 97.8,” he said.