Ringgit to move in range of 3.8558 – 3.8682 against USD today, says AmBank Research

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KUALA LUMPUR (April 4): AmBank Group Research expects the  ringgit (MYR) to trade between its support level of S1: 3.8558 and S2: 3.8499 while the resistance is pegged at R1: 3.8682 and R2: 3.8731.

In his AmBankFXDaily note today, AmBank group chief economist and head of research Dr Anthony Dass said the relative strength index hovers in the stable region.

Dass said the MYR gained 0.1% to 3.8658 against the US Dollar.

He said although the FBM KLCI fell 0.4% to 1,850.78, it registered a net foreign inflow of RM87.8 million.

“Crude oil namely WTI and Brent rose 0.6% to US$63.37/barrel and 0.8% to US$68.17/barrel respectively, after American Petroleum Institute reported an increase in the drawdown from US crude inventories by 3.3 million barrels for the week ending 30th March signaling strong demand in contrast to the build-up of 5.3 million the previous week.

“In the local bond space, the 5-, 7-, year Malaysian Government Securities yield remained at 3.555%, 3.830% while the 10-year yield rose 0.5 basis points to 3.955%.

“The MYR weakened against regional currencies like peso by 0.08% to 13.4662, Singapore dollar by 0.03% to 2.9498, and baht by 0.3% to 8.0652, but strengthened against rupiah by 0.02% to 3,561.73. The 5 year CDS rose 0.23% to 73.17,” he said.