7 August 2020, Friday | 10:46pm

Ringgit opens flat as external environment sours


KUALA LUMPUR: The ringgit opened flat against the US dollar in early session as weak sentiment persisted due to bearish external leads, a dealer said.

At 9 am, the local unit opened at Thursday's closing level of 4.1520/1550 against the greenback.

He said support for the local currency would remain negative as the market remain quiet amid the ongoing US and China trade talks in Washington.

“Traders remained on the sidelines to see the outcome of the meeting,” he said.

The talks, if successful, would avert another round of trade war between the two countries amidst a threat by the US president Donald Trump to hike tariff on US$200 billion worth of Chinese goods to 25 per cent from the current 10 per cent today.

The ringgit was traded mixed against other major currencies.

The local note traded slightly better against the Japanese yen at 3.7776/7814 from Thursday's 3.7831/7862, while traded flat against the Singapore dollar to 3.0447/0480 from 3.0447/0486.

The local currency weakened vis-a-vis to the British pound to 5.4009/4061 from 5.3984/4040 and decreased against the euro to 4.6627/6665 from 4.6482/6528. - Bernama

Ambank research says investors will remain on the sidelines pending the outcome of the US-China trade talks.

"Thus, we foresee MYR trade between our resistance level of 4.1578 and 4.1623 while our support level is pinned at 4.1408 and 4.1450 against the USD," it said.

It added that the focus will also be on April's US core inflation, which is expected to come in at 2.1% year-on-year.



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