Thailand
Malaysia: Ringgit holds flat as market awaits catalysts
KUALA LUMPUR: The ringgit opened unchanged against the US dollar today as the market awaited catalysts to boost the local note.
As of 9.02 am, the local unit was traded at 4.1310/1350 against the greenback from 4.1310/1340 at close Friday.
SPI Asset Management managing partner and head of trading Stephen Innes, however said, the current market propeller for the ringgit would be the oil price factor, as well as positive trade sentiment between Malaysia and China.
“As the greenback continues to strengthen the past week due to the better than expected US gross domestic product announcement, emerging market currencies like the ringgit need other catalysts to push the currency value further, as oil prices are known to fluctuate,” he told Bernama.
Yesterday, Prime Minister Tun Dr Mahathir Mohamad expressed support for the Belt and Road Initiative during his visit to China, which has strengthened trade ties between both countries.
Meanwhile, the ringgit traded lower against other major currencies.
It fell against the Singapore dollar to 3.0330/0362 from 3.0306/0332 and depreciated versus the British pound to 5.3368/3424 from 5.3302/3362.
The local currency weakened vis-a-vis the yen to 3.7006/7052 from 3.6966/6997, but improved against the euro to 4.6061/6109 from 4.6007/6044. – Bernama
Ambank research believes there is more room for the US Federal Reserve to institute its first rate cut sometime in 4Q2019 or 1Q2020 amid fading fiscal stimulus, lagged impact from four hikes in 2018 and limited signs of inflation picking up.
It noted that despite headline 1Q2019 US GDP numbers indicating stronger growth, it was driven by one-off factors while the demand side of the equation continued to slow down.
“Besides, the deceleration of core-PCE signals inflationary pressure remains muted in the economy.
“That being said, it is appropriate for Feds to maintain its patient stance over its upcoming meeting 2nd May,” it said.
Ambank added that the March US personal spending data is expected today.
“On that note, we expect MYR to trade between our support level of 4.1208 and 4.1255 while our resistance is pinned at 4.1345 and 4.1410,” it said.
Source: https://www.thestar.com.my/business/business-news/2019/04/29/ringgit-holds-flat-as-market-awaits-catalysts/#w40fkOsZMLKGJaWW.99