Ringgit to move in range of 3.8800 – 3.8727 against USD today, says AmBank Research

-A +A

KUALA LUMPUR (Apr 18): AmBank Group Research expects the ringgit (MYR) to trade between its support level of S1: 3.8800 and S2: 3.8727 while the resistance is pegged at R1: 3.8987 and R2: 3.9051.

In his AmBankFXDaily note today, AmBank group chief economist and head of research Dr Anthony Dass said the MYR fell 0.06% to 3.8902 against the US Dollar.

He said although the KLCI rose 0.09% to 1,880.49, the market registered a net outflow of foreign funds amounting to RM68.1 million.

Meanwhile, he said the 5-and 10-year Malaysian Government Securities yields rose 1 basis point (bps) to 3.630%, and 0.5bps to 4.005%, while the 7- was unchanged at 3.905%, respectively.

“Furthermore, crude oil prices diverged i.e. WTI rebounded 0.4% to US$66.50/barrel while Brent edged 0.4% lower to US$71.34/barrel respectively, after American Petroleum Institute reported a draw from US inventories of 1.027 million barrels for last week (consensus: 1.429 million) indicating resilient demand amid evaporating worries over geopolitical tension.

“The MYR softened against regional peers like Singapore dollar by 0.2% to 2.9691, rupiah by 0.2% to 3,538.82, baht by 0.07% to 8.0220, but firmed against peso by 0.03% to 13.3983. The 5 year CDS fell 2.78% to 70.36,” he said.