Perhaps u shld direct tis question to an astrologer

It won't be long, since we have nothing to push rm up with all the scandals, debt
But if someone want to make some fast money, then sure can

If people in the trade are hoarding could only mean one thing. The question is will this get out of hand or bnm will air freight in a pallet of US$ bills to flood the market.

This post has been edited by icemanfx: Jul 22 2015, 12:12 PM

Companies told to hedge against ringgit volatility
http://www.thestar.com.my/Business/Busines...lity/?style=biz

MYR will appreciate against USD soon?

what it mean? newbie donno lel

Hope can see MYR currency drop to RM2.50 or less in future!

mayb after our 3rd or 4th generation??

really hope so

Why? As a export-oriented country like M'sia, appreciates RM will makes our primary
export finished good/commodities less competitive in price, and makes less tourists to spend like KING here.
Strong RM will makes more Msians will travelling overseas and less tourists will come here. Surplus < Deficit ?

With the continuous intervention now, the reserves could tank below USD100 bil by end of tis mth

how long can BNM support

BNM has used up 5b in less than a month just to maintain 3.80. Zeti has only another 20 times of 5b to fight for RM

Zeti must be very nervous. So do I. Perhaps shouldn't be too complacent

If USA increase interest rate, will Zeti follow ? She hasn't not much choice has she ?

Unless the situation is so desperate, it is unlikely for BNM to follow US increase in interest rate, as by doing so, it will compound the pressure for business cost across with newly GST + rise in interest rate that may hamper the economy growth significantly.

BNM won't intervene forever, the recent intervention is needed because the drop is simply to fast, whereby they need to "calm" the market by stablise it.

If Zeti won't follow interest rate rise, she needs to spend more of the reserve to intervene. Although she has 100b left, but when it touches 80b balance, she will be forced to re-think whether the intervention is effective. She has only a shallow pocket maybe she will be forced to increase interest rate at that time, after another 20b turn into smoke

RM should not be that weak fundamentaly. It was the confidence in the currency that has weaken the currency. Thanks to the people managing the economy

Getting interesting in September.

If USD rise because of interest hike, BNM still need to let RM depreciates against USD, as long as the drop against USD is not too steep and orderly, BNM may not want to intervene too much.
The intervention recently is more because of too steep and fast pace how RM drop against USD, not because want to defend RM at which level.
A too fast pace and steep movement may cause the confidence issue which may compound the problem that's why periodical intervention need to "calm down" the market.

Just like how recent China stock market plunged that lead to massive fire-sale in the market that lead to bearish sentiment, even though the market is actually still making decent gain over the year.
The stock market keep on plunging like no tomorrow, until there was some intention of intervention from the gov, or authority policy that soother the market.

Interest rate hike is not a good solution to deal with such situation.
There is a difference between USD strength alone vs RM weak across currencies.

The situation is like USD strength consist of 80%, while RM weakness make up the rest 20%. A small hike won't fix the 70%, but the hike may risk the economy in term of slowing down.
Economy slowing down - a weakness factor for RM. If so, it is back to square one, the hike become no effect.

If RM vs other currencies, the weakness generally about 3~10% only, as compared to USD that has dropped about 20% since the RM peak.

The weak RM has a lot to do with market sentiment which make worse with recent saga that compounded the outflow. (please don't post discussion on non-related to pure financial issue, as we don't want the topic being derailed, ty)

Based on economy data alone, RM fundamental is not that bad actually.

So the RM will still drop.

US$ to 3.81++ even if BNM intervene. Very strong even against Eur, Aud, Nzd, Cad

It's not RM drop. It's US$ up

my read is given continuous falling oil prices, exports not increasing and worsening politics, it will slide.

bnm unlikely to use too much reserves for just 3.81.

more likely it will let it slide slowly.. how about 3.85, 3.90?