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Malaysia: Ringgit opens flat against US$ amid continued trade tensions
KUALA LUMPUR: The ringgit opened flat on Thursday against the US dollar amid market concern on global economic growth as well as the fragile truce on US-Sino trade war, a dealer said.
At 9 am, the ringgit stood at 4.1350/1380 against the greenback from Wednesday’s close of 4.1350/1380.
Vanguard Markets managing partner Stephen Innes explained that despite market worries on the background, investors would chase for yield following the falls of 10-year Treasury note yield.
“This would create a more friendly risk environment, will eventually boost the ringgit appeal today,” he told Bernama in an email.
The ringgit traded mixed against a basket of major currencies.
It strengthened against the Japanese yen to 3.8369/8407 from 3.8379/8411 and increased against the euro to 4.6668/6714 from 4.6672/6722.
The local currency eased against the Singapore dollar to 3.0501/0527 from 3.0499/0532 on Wednesday and weakened versus the pound to 5.2018/2064 from 5.1973/1035. – Bernama
Ambank research expects the ringgit to trade between its support level of 4.1217 and 4.1270 while its resistance is pinned at 4.1425 and 4.1532.
“Concern over the slower global economy has raised greater probability for more monetary stimulus measures going forwards.
“With global rates looking at a more easing trend, that should see global bond yields pointing towards the Southeast direction,” it said in a morning note.
The research house added that the key focus of the day would the May trade data, which consensus expected to show growth of 3.6% in exports and 2.6% in imports with a trade balance of RM8.2bil.
Source: https://www.thestar.com.my/business/business-news/2019/07/04/ringgit-opens-flat-against-us$-amid-continued-trade-tensions/#0sPfjGIXci4uBQYq.99