Ringgit to move in range of 4.0240 – 4.0320 against USD today, says AmBank Research

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KUALA LUMPUR (June 28): AmBank Group Research said its  support level for the ringgit (MYR) holds at 4.0161 and 4.0240 and it anticipates the MYR to test its resistance level of 4.0320 and 4.0464.

In his AmBankFXDaily note today, AmBank group chief economist and head of research Dr Anthony Dass said the MYR slipped 0.2% to 4.0300 against the dollar.

He said the KLCI dropped 0.6% to 1,666.08, recording a net outflow of RM256.3 million in foreign funds.

“Meanwhile in local bond space, market interest was seen on the belly of the curve with the 5-year Malysian Government Securities yields remaining unchanged at 3.850% while the 7-year rose 1 basis point (bps) to 4.060% and 10-year MGS fell 3.5bps to 4.210%, respectively.

“Crude oil prices, namely WTI and Brent gained 3.2% and 2.2% to US$72.76/barrel and US$78.02/barrel, respectively as the EIA crude oil weekly inventory continued to decline by 9.9mil barrels from a contraction of 5.9 mil barrels, the biggest fall since September 2016.

“The MYR weakened against the regional currencies – the rupiah by 0.2% to 3518.36, baht by 0.1% to 8.2030 and peso by 0.3% to 13.2844 but strengthened against the Singapore dollar by 0.1% to 2.9520. The CDS rose 2.00% to 108.43,” it said.