Ringgit To Trade Around 4.21 Level: Kenanga Research

The ringgit is expected to trade around the 4.21 level this week due to lingering Omicron worries, Kenanga Research says in a note.

It said that the local note may face another round of sell-off if the US inflation rate spikes again, increasing the likelihood that the Fed would kick off its policy normalisation sooner.

Reviewing ringgit’s trading in the first week, Kenanga says that the ringgit experienced selling pressure and closed the first trading week of 2022 in the red after the minutes of the FOMC December meeting indicated that the Fed has turned more hawkish.

It said that despite a 5.1% WoW gain in Brent crude oil price, the USDMYR once again breached the 4.20 threshold as the US 10-year Treasury yield rose to 1.76% (Jan 7), its highest level since January 2020.

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