Risk assets and oil prices may be hit, taking down currencies of commodity producing countries, especially the Russian ruble, Colombian peso and ringgit, according to Bloomberg.
KUALA LUMPUR: AmBank Research remains cautious on the ringgit and expects the currency to trade between its support level of 4.0193 and 4.0293 to the US dollar while its resistance is pegged at 4.0462 and 4.0531.
It said on Friday with US President Trump’s interest to negotiate a fair trade deal with China, the trade war rhetoric has eased slightly.
“However, uncertainty remains on the trade war concerns. With ongoing uncertainties still high on the table, we remain cautious on the ringgit,” it said.
On Thursday, the ringgit fell 0.10% to 4.0410 partly due to better greenback. Also, the May’s industrial production and manufacturing sales data were softer, and could have weighed on the ringgit.
Despite that the FBM KLCI rose 0.88% to 1,703.57, foreign participation remained net sellers RM52mil.
Meanwhile, the five, seven and 10-year MGS yields remained unchanged at 3.755%, 3.950% and 4.095% respectively.
Crude oil prices were mixed with US light crude oil down 0.26% to US$70.20/barrel while Brent rose 1.19% to US$74.27/barrel respectively as restoration in Libyan oil exports relieved concerns over rising production from OPEC and its allies may lead to a potential spare capacity crunch.
The ringgit weakened against regional currencies, that is the Thai baht by 0.48% to 8.2170, Singapore dollar by 0.08% to 2.9661, rupiah by 0.06% to 3561.00 and peso by 0.26% to 13.2447. The CDS fell 1.05% to 100.92.
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