KUALA LUMPUR (April 25): AmBank Group Research expects the ringgit (MYR) to hover between its support level of 3.8907 and 3.8959 while the resistance is capped between 3.9102 and 3.9158.
In his AmBankFXDaily note today, AmBank group chief economist and head of research Dr Anthony Dass said the MYR softened 0.2% at 3.9050 against the US Dollar.
He said the KLCI fell 0.8% to 1,865.34 with the market experiencing a net foreign outflow of RM191.4 million.
Dass said crude oil prices namely WTI and Brent fell 1.4% to US$67.70/barrel and 1.1% to US$73.86/barrel respectively as the US and French Presidents will come close to agreeing on preserving the Iran nuclear deal which would mean that sanctions would not be re-imposed on the OPEC member, dispelling threats to oil supply.
“The 5- and 7-year Malaysian Government Securities yields rose 1 basis point to 3.880% and 4.075%, while the 10-year yield fell 1 basis point to 4.190%, respectively.
“The MYR also weakened against regional peers like Singapore dollar by 0.2% to 2.9523, rupiah by 0.8% to 3,556.72, baht by 0.5% to 8.0521, as well as peso by 0.4% to 13.3876. The 5 year CDS fell 0.1% to 73.42,” it said.