KUALA LUMPUR: The ringgit rose to the strongest in three weeks on Thursday as the dollar weakened before key central bankers meet at a symposium in Jackson Hole, in the US.
The US$/ringgit fell 0.1% to 4.2770 after reaching 4.2765, lowest since Aug. 4.
At 11.44am, the ringgit was flat vs US$ at 4.2765.
The support levels are 4.2760, 4.2663, 4.2505; resistance 4.3022, 4.3055, 4.3193.
The one-month implied volatility for US$/Ringgit climbed 11 basis points to 5.69%.
Morgan Stanley has a long position on the ringgit as it remains among the cheapest currencies in the region, strategists including Gordian Kemen wrote in note Wednesday
It maintains constructive view on emerging markets (EM) assets as valuations, fundamentals and technicals support its bullish stance.
However, any gains in EM Asian FX arising from weak US$ are expected to be limited as traders await policy statements from Jackson Hole, says Sean Yokota, head of Asia strategy at Skandinaviska Enskilda Banken AB in Singapore
* A lot of weakness in the ringgit is probably over and the Malaysian economy is likely to get a boost from pre-election government spending
* The next key level for US$/Ringgit is 4.27.
* The 10-year government bond yield drops 1bp to 3.96%.
* Outlook is still favourable for EM assets, especially high yielders, amid a positive macroeconomic backdrop, a bounce in oil prices since June and increased market dovishness on future Fed action, Credit Agricole strategists led by Sebastien Barbe wrote in report Wednesday.
* Risk to EM of a more hawkish tone from Fed Chair Yellen at Jackson Hole is limited as Fed’s view is well known.
* Prime Minister Datuk Seri Najib Tun Razak will meet US President Donald Trump on Sept 12 to
discuss trade and regional cooperation, according to the White House. - Bloomberg
The US$/ringgit fell 0.1% to 4.2770 after reaching 4.2765, lowest since Aug. 4.
At 11.44am, the ringgit was flat vs US$ at 4.2765.
The support levels are 4.2760, 4.2663, 4.2505; resistance 4.3022, 4.3055, 4.3193.
The one-month implied volatility for US$/Ringgit climbed 11 basis points to 5.69%.
Morgan Stanley has a long position on the ringgit as it remains among the cheapest currencies in the region, strategists including Gordian Kemen wrote in note Wednesday
It maintains constructive view on emerging markets (EM) assets as valuations, fundamentals and technicals support its bullish stance.
However, any gains in EM Asian FX arising from weak US$ are expected to be limited as traders await policy statements from Jackson Hole, says Sean Yokota, head of Asia strategy at Skandinaviska Enskilda Banken AB in Singapore
* A lot of weakness in the ringgit is probably over and the Malaysian economy is likely to get a boost from pre-election government spending
* The next key level for US$/Ringgit is 4.27.
* The 10-year government bond yield drops 1bp to 3.96%.
* Outlook is still favourable for EM assets, especially high yielders, amid a positive macroeconomic backdrop, a bounce in oil prices since June and increased market dovishness on future Fed action, Credit Agricole strategists led by Sebastien Barbe wrote in report Wednesday.
* Risk to EM of a more hawkish tone from Fed Chair Yellen at Jackson Hole is limited as Fed’s view is well known.
* Prime Minister Datuk Seri Najib Tun Razak will meet US President Donald Trump on Sept 12 to
discuss trade and regional cooperation, according to the White House. - Bloomberg
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