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 Forex Version XVI, Foreign Exchange Market Discussion

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cybermaster98
post Aug 4 2015, 11:07 AM

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Can someone suggest the best way to hedge against the Ringgit drop? The USD strength wont last for long. Soon the US Gov will intervene to lower the USD so changing now to the USD may not be wise. Im looking at Euro, AUD or SGD. Ive also looked at foreign currency FD's but rates are quite poor.

What do you suggest and how?
cybermaster98
post Aug 4 2015, 01:38 PM

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QUOTE(sleepwalker @ Aug 4 2015, 11:23 AM)
They are unlikely to intervene as the USD is still the most sought after currency even with worldwide payment being done electronically. While we have a weak ringgit, the USD is not at a historical high against other major currencies. Most of the currency pairs like EUR/USD, AUD/USD, USD/JPY and GBY/JPY are all around halfway between highest and lowest ever. The US Dollar index against the basket of currencies is around 97. Historical low around 70 (2008) and high around 120 (2001). Even the dollar index is around halfway point between highest to lowest.

Most members here are spot traders and would seldom hedge since most trades are very short term reacting to recent news and events. And the funniest thing here is that almost all spot traders here are dealing only in USD with our brokers so the falling ringgit is actually beneficial to us. Not sure how we can help you here.
So in your opinion, where do you see the Ringgit heading in the next 3-6 months against the USD, Euro and SGD?

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