If USD strengthens because of its own quality, thn the RM will weaken vs the USD - which is what we are seeing across the board. But why should the RM weaken across the other currencies besides the USD?

The painful part comes in whn the RM weakens across everybody,.. thn regardless of whether we transact in the USD or not, we are at a huge disadvantage.

A simple glance through.

RM vs USD from Rm3.20 to 3.80 (Down near 20%)
RM vs SGD from RM2.60 to 2.80 (Down about 10%)
RM vs AUD from RM3.05 to 2.85 (up about 6%)
RM vs NZD from RM2.75 to 2.60 (up about 5%)
RM vs 100 Bath from Rm10 to about RM11.+ (Down about 10%)

RM is weak but situation is not as same as 1997.

USD is indeed very strong.

Many years ago, many bashed USD fundamental and so bearish about USD, now USD is the strongest currency in the world.

Tq Cherroy,... very good analysis there. From the first two lines (n bold), if BNM tries to peg against the USD, we can always profit with the SGD. This has always been my plan, and my predction of the SGD.

Secndly, one can always accumulate the AUD at these times,... it will come back again later.

The so-called defend are to ensure certain parties benefit from it while people have to suffer from it.
http://www.thestar.com.my/Business/Exchange-Rates/
Still breached rm3.80 for USD and rm2.80 for SGD

The ringgit rate now is not reflective of M'sia's economic fundamentals
http://www.theedgemarkets.com/my/article/f...ic-fundamentals

with bnm intervening now, it becomes much harder to say if rm is undervalued... or over valued!

take today, yellen just reaffirmed probability for rate hike this year... euro, yen, aud, sgd, baht all fell 0.3-0.4%.

but rm stays at 3.80.

foreign funds still selling at bursa, crude price falling again... plus:


3.80 = undervalued or overvalued at this time?

is buying AUD stocks or keeping excess of AUD a good plan B now? For real I have more confidence in the land down under compared to our stupid jibby nation..

This post has been edited by dwin95: Jul 16 2015, 12:34 PM

or NZD even? theyre pretty low for us to jump ship too

or NZD even? theyre pretty low for us to jump ship too

RMB also rise d... now RM 1 = RMB 1.6 @@

aud, nzd been declining against rm for some time now. but they have seen interest rate cuts, not here in msia yet.

bnm been intervening to maintain it at 3.80x/usd.
usd strengthening again since yesterday, so if rm is "pegged", great time to buy almost any foreign currency now.

australia, new zealand share one thing in common with misa - commodity exporting countries. and commodity prices are low at this time with no good reason to think any of these currencies will strengthen against usd or euro or yen anytime soon.

so, if need to use aud/nzd now, great time to buy.

for long term purposes, usd or euro or yen or sgd will be a better choice, imo.

the uncertainty we have at this time:

.. how long will/can bnm intervene?
.. will the intervention maintain 3.80x or let it slide slowly?
.. with gst and what not, gdp growth may slow to the extent bnm may cut interest rates...?

we have no idea what the fundamental of RM should be.
do we know?
Zeti said it's undervalued, but Zeti may not be faithful because of her position and responsibility for RM's stability.
Well, fundamental of Malaysia is the key factor to judge RM's fundamental.
Major concern for all of us today is political unstable and our inability to mature the level of corruption by government.

so conclusion for myself is: i don't know. i've no idea.
therefore, what best for me is to diversified my assets under different currencies, now at USD and HKD, which is not very good because these two is kind of linked together actually. But in long term, I still see HKD moving towards RMB. In past 2-3 years, I have gradually moving my RM assets (stocks) into USD and HKD assets (stocks), now already reached 50:50. My target is continue moving out from RM, probably reaching 30:70 stage. Probably should start looking at emerging markets such as Vietnam and India.

Funny how, I am actually looking at Iskandar to be major beneficiary of Singapore. If Iskandar works out well, I should buy Singapore assets (stocks) instead of Iskandar assets. The best is that SGD is a great currency.

This post has been edited by yok70: Jul 16 2015, 07:49 PM

yo! good stuff.

i m in agreement with u in general, esp about diversification.

better be safe than sorry!

Why wiuld you want to diversify into the emerging mkts like Vetnam and India now ?

can start "looking", but action... no.

This post has been edited by AVFAN: Jul 16 2015, 09:44 PM

Sorry AVFAN,... I was actually tryng to ask yok. But tks for your reply anyway,... you wouldn't want to. Why would yok want to diversify into Vietnam and India in these times ?

Please don't ! You have incoming expenses, important ones,... and you are already having problems with those needs. Please don't dabble anymore in currencies. IF IT'S ME, I would CHANGE ALL MY READY RM FOR MY EDUCATION INTO THE USD NOW. The RM will not appreciate anytime soon. Depreciate further, higher possibility. And you WILL NEED TO USE the money soon.

Please be careful, bro,... don't add to your problems...

Sorry ask . Is the stocks as in unit trust. Reits or some shares?? Mind to elaborate? I am interested

Who is Zeti? Is just a fat lady that been sleeping and going vacation for the past 20 years.
By just saying undervalued can help
Are we talking like we are at wet market shouting for cheap good price
This is something to be expected when we throw something out for other to speculate.

Weak currency boosts many tourists. Everywhere is packed with foreigners with higher currency exchg rate and Singaporean cars. Let depreciate another 5 - 8 % to bring in more businesses to country Tourism.