Ringgit to move in the range of 3.9114 – 3.9283 against USD today, says AmBank Research

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KUALA LUMPUR (March 1): AmBank Group Research expects the ringgit (MYR) to trade between its support level of S1: 3.9114 S2: 3.9059 while the resistance is pegged at R1: 3.9283 R2: 3.9320.

In his AmBankFXDaily note today, AmBank group chief economist and head of research Anthony Dass said the MYR depreciated 0.2% to 3.9170 against the US Dollar due to stronger dollar.

“Also, crude oil i.e WTI and Brent extended its losses by 1.5% to S$61.46/barrel and 1.3% to US$65.78/barrel respectively, after Energy Information Administration reported 3 million barrels of US inventory build-up for last week, double the expected volume by the market.

“Besides, the KLCI edged down 0.8% to 1,856.20 as foreign investors pulled out a net amount of RM26.1 miillio.

“We saw the 5-year Malaysian Government Securities (MGS) yield rise 2.5 basis points (bps) to 3.640% while the 7- and 10-year MGS yields fell 1.5bps to 3.955% and 4.030% respectively,” he said.

Dass said the MYR was stronger against regional peers including Singapore dollar by 0.2% to 2.9606, and rupiah by 0.3% to 3,510.60 but weaker against peso by 0.3% to 13.3164, and baht by 0.2% to 8.0382.

He said the 5 year CDS fell 1.05% to 60.79.