for that... yen, sgd, tbh also not bad.

5pm, usd... 3.772. lost 1.4% in 1 day.

no intervention by bank negara?

This post has been edited by AVFAN: Jun 8 2015, 06:07 PM

maybe outflow is too big?

Ringgit slumps to nine-year low as funds exit on Fed rate bets

http://www.theedgemarkets.com/my/article/r...-0?type=Markets

32% foreigners holding rm denominated bonds, selling.
usd bonds... probably worse, pay more rm for usd interest.
oil prices drop, gas price drop.
exports drop, trade balance drop.
budget deficit will have to incr.
big unknown is legal and illicit outflows.

quite a nightmare, isn't it?

BNM still got that interest rate ammo but I don't they want to intervene.
Lower Ringgit is good for the Malaysia (as exporters of manufactured products).
But, unfortunately, Malaysia consumers will suffer more.

Dun think BNM will intervene so early

right, i think they will intervene only at next stop, 3.80. the reserves appear untouched yet.

we'll see soon enough.

the traditional thinking is weak currency helps exports.
does not work for msia at this time, imo.
problem is rm has been weak for months, and exports are dropping.
gas prices, cpo prices no good. the rest are so-so.
i.e. commodity based and low value exports at a time of a slowdown in mfg powerhouses like china will not do any good.
yet, we keep getting cheap foreign labor for such industries.
if it stays that way for another few years, the 5 mil foreign workers (and millions more citizens not really working) will exert a tremendous strain.
http://www.matrade.gov.my/en/malaysia-expo...thly-trade-2015

the tricky part now is with large sums to be spent on the budget, there will be a need to borrow more, at higher cost.

well, there are thousands of highly paid brains in powerful positions, they should see all that coming and hv solutions ready, right. so, let's relax...

I totally agree. Walk into NIKE or ADDIDAS, one will note the tremendous price difference.
Even cosmetic price increase...

Time to portrait natural beauty

How to relax.. feeling like they're bring all of us to Holland for free trip

Perhaps now is the time to activate Short Position

BNM doesn't have a lot of interest rate ammo at the moment.

Currently BNM OPR 3.5% is one of highest around, to support RM using interest rate, rate needed to be raised, which may kill the economy by doing so (which may already affected by GST domestically and slow down in world economy whereby we say mostly export/import of major trading countries are contracting).

The interest rate ammo BNM have is lowering rate to boost the economy, but with household debt already at elevated level, this is not something desired to be seen by BNM.
Lowering interest rate and let the household debt building up further? May be asking for more trouble only. (like sweet first pain latter)

So BNM interest rate ammo is in quite a conundrum position.

This post has been edited by cherroy: Jun 9 2015, 12:05 AM

I don't think BNM will intervene the market if the RM dropping is in tandem with other currencies.
As this time around, it is more about USD strength, instead of RM weakness alone.

We don't see major rate movement between other major currencies like Aud, Yen etc.
Sgd is always tightly move with USD, so we see significant movement as same as USD.

Currently worldwide trade figure is weak across, not only Malaysia, this is the aftermath effect of lower oil price, commodities price now being seen in the trade figure, so we have dropping export/import figure despite with weaker currency.

There is nothing wrong with foreign workers itself, but gov need to come out a clear policy on hiring, assist corporate to drive up productivity etc. instead of flip flopping policy on foreign workers issue.
Foreign workers are the one make the factories running, driving the export figure.
Even Sg has lot of foreign worker especially Malaysian.

Without foreign workers, many industries will become standstill.
Foreign workers is not equal to low value export, as long as you get the combination right, they are contributing to the productivity as well.
Just like what Sg had done.

Foreign workers shouldn't be the spacegoat, instead we should look back on ourself doing.

Wow my thread is hot

made in malaysia bro...we export them
our rubber are world class..so those tyre maker chose to make them here...hence the cheap price of the tyre that we're paying
if its imported...it would cost more than RM200/tyre+-
continental is a good choice

Ringgit edges to 3.80, Bank Negara says weakness temporary
http://www.thestar.com.my/Business/Busines...-380/?style=biz

weakness temporary?

The strange thing about weakening Ringgit, I thought I would see imported stuff from Malaysia will go down in prices but I haven't seen that yet. For example, no drop in Durians price in Singapore.

really? that's weird should be cheaper lor