Ringgit to trade between 3.99 and 4, says AmBank Research

  • Forex
  • Friday, 22 Jun 2018

KUALA LUMPUR: AmBank Research expects the ringgit to trade between its support level of 3.9968 and 4.0038 against the US dollar while its resistance is pegged at 4.0242 and 4.0382 With continued uncertainties on the external front. 

The research house said on Friday the RSI levels continued to trend higher at the overbought region, suggesting risk are skewed to the downside for the ringgit.

On Thursday, the ringgit fell 0.3% to 4.0157 against the dollar. External uncertainties continued to weigh on the local currency. 

AmBank Research said this ws reflected by the continued outflow of foreign funds from the equities with a net foreign outflow of RM264.9mil. The FBM KLCI fell 1.0% to 1,692.32. 

Meanwhile, the 5-,7- and 10-year MGS yields remained unchanged at 3.850%, 4.010% and 4.230%, respectively. 

However, the ringgit largely strengthened against the regional currencies. It gained by 0.1% against the Singapore dollar to 2.9446, rupiah by 0.9% to 3511.55 and baht by 0.04% to 8.1948 but weakened against peso by 0.2% to 13.3166. 

The country’s external reserves fell to US$107.9bil as of June 14 from US$108.5bil end May. The CDS rose 1.49% to 105.29.

As for oil prices, both the WTI and Brent fell 0.6% and 2.1% to US$65.85/barrel and US$73.17/barrel respectively as the OPEC and its allies moved closer to a deal to increase oil production after Iran eased off on its threat to block the agreement. 

Forex , Analyst Reports