Ringgit seen hovering around 4.09–4.13

KUALA LUMPUR: AmResearch sees the ringgit hovering between 4.09 and 4.13 against the US dollar in September amid equities markets volatility.

The research house said that from past records, equities markets tend to hit choppy waters in September and the volatility this time around was unlikely to end in September.

Instead, AmResearch said volatility could stay till end-2018 due to various issues that are still simmering such as the ongoing trade war between the US and China.

“With volatility on the table, the ringgit is expected to hover around 4.09-4.13 against the US dollar in September, with the possibility to reach 4.15,” AmBank Research chief economist Anthony Dass ( pic) said in a report.

The 10-year Malaysian Government Securities (MGS) yield is expected to linger around 4.02%-4.07%, supported by the shortage of private debt securities issuance by RM20bil to RM70bil while the issuance of govvies remains at RM103bil and backed by real money.

Besides, MGS yields should continue to be well supported by onshore real money demand.

“As for the FBM KLCI, it is expected to trade between 1,775 and 1,887 in September, with the downside around 1,750.

“The choppy trend in the FBM KLCI can be welcoming to some investors as it presents opportunities to make some profit,” Dass said.