Stable oil prices to support ringgit, AmBank Research says

  • Forex
  • Monday, 27 Apr 2020

KUALA LUMPUR: Signs of stability in the price of oil will provide some support to the ringgit this week, AmBank Research says in its ringgit outlook issued on Monday.

The research house however did caution that doubts about the severity of the global economic recession unfolding due to the Covid-19 pandemic will continue to leave jitters on the durability of recent crude gains.

“The MYR is likely to trade within our support level of 4.3404 and 4.3496 while resistance pinned at 4.3683 and 4.3791, ” it said.

Last week, Brent price rose 0.52% to US$21.44/bbl while WTI surged 2.67% to US$16.94/bbl as energy producers continued to cut the number of rigs drilling for oil in US and Canada.

On a brighter note, Malaysia's new Covid-19 daily cases remained below 100 for over one week.

Last Friday, the MYR depreciated slightly by 0.05% to 4.363 against the dollar. While Bursa Malaysia’s FBM KLCI declined 0.85% to 1,370.

In the MGS market, the 3-, 5-, 7- and 10-year eased 1.5bps to 2.430%, 4bps to 2.610%, 10.5bps to 2.680% and 4.5bps to 2.880%.

The IRS curve was broadly fell – (1Y) 0.5bps to 2.370%, (3Y) 0.5bps to 2.300%, (5Y) 0.7bps to 2.378%, (7Y) 1.5bps to 2.480% and (10Y) 0.5bps to 2.690%. Elsewhere, the 3-month KLIBOR stood at 2.79%.

Against the major currencies, the MYR strengthened mostly; 0.19% to 4.695 vs. the EUR, 0.10% to 5.375 vs. the GBP and 0.16% to 1.623 vs. the CNY.

However, the ringgit weakened; 0.52% to 2.775 vs. the AUD and 0.13% to 4.058 vs. the JPY.

Regionally, the ringgit also traded mixed; (SGD) -0.14% to 3.063, (THB) +0.31% to 7.441, (IDR) -0.15% to 3,530, (PHP) +0.25% to 11.65 and (VND) +0.04% to 5,391.

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ringgit , oil price , oil rigs


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