Stronger ringgit by year-end?
http://www.thestar.com.my/Business/Busines...rend/?style=biz

I wonder MYR will goes up to 3.80 or not on monday

My friends in bursa just told me there's a massive sell off now.. I believe investor are started to pulling off now

Zeti is widely regarded as one of the best central bankers in the world, but her term ends next year.
Who will be the next head of Bank Negara? 

I also hope for extension but would jibby give his blessing? 

Yea... The worst is still has yet to come.. Stay tune! Hope we won't end up like Greece 

To me, it is like gambling now.

I still remember not long ago when USD went from 3.0 to 3.6, the same questions like yours came up. Some believe it will stop at 3.8, some thought it would go beyond. Some even thought it would go back to 3.3. On hindsight, those gambled to stop at 3.8 lost. Those acted on their prediction that it will go beyond 3.8 won the gamble

Same situation now. Will it go beyond 4.0 ? 4.5 maybe ? Or come back down 3.8 or 3.6 ? The stake is big (relative), with US$100k for eg, if it goes to 4.5, you gain RM50k. That is 12.5%

The gamble is significant in a volatile market, if you are in a position to gamble that is (ie you have cash to decide to buy US$ or not). If no spare cash, the person can only watch and pray for RM to perform better

Ways I can think of for ordinary Malaysian to hedge include

1. Buy US$ in local banks by opening a foreign currency account
2. Buy US$ greenback from money changer and keep the cold hard cash (easiest, but can lose the paper money)
3. invest in U.S. Stock (even local share platform can do this)
4. invest in bursa companies with big portion or revenue in USD.
5. UNit trust with investment in US stock market
6. ETF in US$ (refer to unker dreamer's thread)

Of course there are ways other than the above

Except those could earn foreign income, average Joe could only braced for inflation and subsequent drop in disposable income.

the average msian can't do much.
just don't get into more difficulty by overspending, over borrowing, taking excessive risks.
some may want to grow own veg or make own cheese, but i think all that is just nice talk, zero effectiveness on yr wallet.
bloomberg article... yes, it is always good to read arguments and views from all sides.
there were many such articles in bloomberg and cnbc in may-june about how crude price will return to 70+ by sep.
need to read a lot more to make own judgment and decisions, if any is to be made.

i just took a fresh look at the chart after putting in all the variables.
http://www.bloomberg.com/quote/USDMYR:CUR
u can pair as many as u like.

from that bloomberg fx chart, in the last 1 yr, against usd, from best to worst among the selected currencies:

chinese renminbi ("pegged", post devaluation)
thai baht
sing dollar
euro
japanese yen
korean won
indon rupiah
new zealand dollar
aussie dollar
malaysian ringgit

it is curious how come the thai baht is so strong?
big beneficiary of cheap oil?
thai exports exploding? (yes, i know and have visited some monster size rubber glove and food factories there)
bigger and bigger tourism $?

1MDB have denied the news

I suggest :

1) Do not hike interest rate.

2) Start to tighten flow of funds. Make it harder for funds to come out. Encourage inflow of funds by corporates etc.

3) Hike GST 1% to show sincerity in improving budget. Cut petrol subsidies for the same reason. Better allocation of resources.

4) Continue to raise money by issuing government bonds after the above steps.

5) Let the ringgit have a controlled slide to US4.5 to 4.80. Make exports competitive. Discourage overseas spending. Trade balance will improve and shore up forex reserves.

6) Do not increase corporate and personal income tax. Do not increase int rate. Not even 0.25%. That will send wrong signal.

7) Spend as little as possible on defending ringgit. Just spend enough for it to slide to 4.8. With fiscal prudence and improved trade balance, RM might even surprise ny strengthening. Do not fight the market. Is is futile.

I see people don't ever care about the 4.2 drop maybe if drop to 4.6 then people will start panic. Ringgit seem to have stabilized.

Usd 4.2 if nothing change. Usd4.7 if more "skeleton"revealed, China devalue their currency some more or US  decided to increase rates (US now thinking whether to increase or not due to China)

There is a debt repayment exercise sometime this month to be performed against the 1MDB Loan. It was claimed earlier that an Abu Dhabi firm will forward abt,... of the top of my head,... 785M USD to help Msia. Subsequently, it was reported that the Abu Dhabi firm is reviewing this commitment.

If the UAE is not going to help Msia, where to get the funds to fulfill this exercise ? And the subsequent exercises, eg coupon payment dates, etc ?

If Msia default this month,... then more turbulence to come.

It is the short-term debts tat I worry about.

Just relax guys 4.2 ain't so bad when compared to hkd which is 7.75 to the usd but still hong kong people still get by wonderfully

worse they can do is to issue some sukuk bond & "ask" ASx fund or any others local funds to subscribe it

1MDB will honour its obligations on JIT basis