Ringgit will be under pressure due to geopolitical concerns: Ambank

by BERNAMA/ pic by BLOOMBERG

THE ringgit’s movement may come under pressure as the dollar strengthened on the back of geopolitical concerns involving border skirmishes between Chinese and Indian troops, fresh provocation by Pyongyang as well as the COVID-19 pandemic.

Ambank in its research note today said with dark clouds on full US economic recovery post-pandemic,  the central bank will use its “full range of tools” to cushion households and businesses.

“We foresee the ringgit to trade between our support levels of 4.2509 and 4.2673 while our resistance is pinned at 4.2944 and 4.3126,” it said.

Among the key focus for today’s market are the Bank of England and the Bank of Indonesia interest rate decision.

Compared to major currencies, the ringgit rose mostly higher against major currencies, strengthening against the Euro at 0.55 per cent, British Pound at 0.53 per cent, 0.19 per cent against the Australian dollar and appreciated 0.08 per cent against the Singapore dollar, year-to-date.

However, regionally the ringgit closed lower by 0.44 per cent against Japanese Yen, slid  0.06 per cent against Thai Baht, 0.20 per cent to Philippine Peso.