Thailand
Malaysia: Ringgit opens lower against US$ ahead of rate cut decisions
KUALA LUMPUR: The ringgit opened slightly lower against the US dollar today as traders stayed cautious ahead of a widely expected US interest rates cut later this month.
At 9.05am, the ringgit stood at 4.1120/1170 from Monday’s close of 4.1110/1150.
A dealer said the ringgit is moving within a tight range ahead of the Federal Open Market Committee meeting on July 30-31.
He said the European Central Bank is also expected to announce its monetary policy on Thursday.
In addition, the dealer said investors are also looking forward to the outcome of the US-China Trade Truce 2.0.
It was reported that face-to-face meetings between the two countries in respect of trade negotiators could likely happen soon after a few rounds of telephone conversations.
Overall, the ringgit traded mostly higher against a basket of major currencies.
It was up against the Singapore dollar to 3.0189/0236 from yesterday’s close of 3.0219/0253 and gained against the yen to 3.8056/8113 from 3.8104/8151.
The local unit also advanced vis-a-vis the euro to 4.6063/6131 from 4.6109/6166, but was down versus the British pound to 5.1264/1343 from 5.1248/1306. – Bernama
Ambank research expects the market to maintain its focus on the European Central Bank this week as it considers additional easing policies.
This comes ahead of the US Federal Reserve’s own meeting on July 30-31, which is expected to result in a 25bps rate cut, rather than a 50bps cut, given economic data that suggested the economy did not need further stimulus.
Other factors in the spotlight include the contest between Jeremy Hunt and Boris Johnson to become party leader of the UK Conservative party and the new UK prime Minister, as well as the US-China trade talks and the geopolitical tensions in the Middle East.
“We expect MYR to trade between our support level of 4.1008 and 4.1059 while our resistance is pegged at 4.1161 and 4.1222,” said Ambank.
Source: https://www.thestar.com.my/business/business-news/2019/07/23/ringgit-opens-lower-against-us$-ahead-of-rate-cut-decisions/#AQcWzzEj8bEXZs9z.99