KUALA LUMPUR (July 22): The ringgit snapped its 10-day losing streak against the US dollar today as buying interest in the local note recovered ahead of the Consumer Price Index (CPI) data set to be released tomorrow.
At 9.20am, the local note had risen to 4.2280/2295 versus the greenback from yesterday’s close at 4.2320/2345.
However, ActivTrades trader Dyogenes Rodrigues Diniz expects the movement to be short-lived, saying that the greater the bullish movement, the more prone the market is to take a big dive.
Additionally, he noted that the ringgit had already touched the resistance level at 4.2350 against the US dollar and shown initial signs of exhaustion.
“From a technical point of view, a major pullback is expected as the buyers seem to be running out of steam.
“If a major retracement does take place, it could drive the price all the way down to the 4.1750 level, where more buying pressure is likely to support the dollar,” he told Bernama.
Meanwhile, the local note was traded mostly lower against a basket of major currencies.
The ringgit weakened against the Singapore dollar to 3.0990/1006 from yesterday’s close at 3.0938/0961, declined against the British pound at 5.7902/7923 from 5.7695/7729 and depreciated vis-a-vis the euro to 4.9840/9857 from 4.9819/9849.
However, the local unit appreciated against the Japanese yen to 3.8388/8405 from 3.8448/8474 previously.-BERNAMA