Currently, oil price drives the sentiment of money movement, hence swing in RM exchange rate.

46 to 51 WTI oil price movement is not a significant effect on RM or oil income.
But the effect of oil price trend movement is more pronounced on the sentiment.

It doesn't make sense to relate TPPA to the RM movement.

All EM currencies were rising across, not only RM.
While those EM countries are not even in the TPPA.

TPPA still has long time to go before it can be effectively "valid".
Countries need to sign the TPPA, then need to go to respectively (12) countries to table any change in tax rules and regulation, before it is can be said, now the agreement can be said to "start".

While there is little info what actually being known inside the TPPA, how can anyone derive the impact on respective currencies.

Somemore why big money in forex market want to purposely drive up the EM currencies, there is no benefit to do so, nor they are charity fund so that people can make a money in forex market.

It is more about the diminishing rate hike possibility and improved oil price that resulting money movement in the forex market.
Rate hike possibility lower that resulted treasuries yield plunging down, oil price up, profit taking (mind that previously the downward movement is sharp), were the main driving force of the reversal.
It is USD weakness, or profit taking, and a potential shift in money outflow.

We also saw foreign funds that were main buyer in the EM equities market, when the RM (or EM currencies) has its reversal trend.

Please do not post any political matter in the finance section.
If political risk could cause RM movement, just stated so as "political risk" the end and no further more.

Those further discussion should not be in the finance section.

Ty.

Last night, oil price took a tumble, so does RM movement this morning.
So currently the RM movement has high coorelation to the oil price.

Based on some prediction made for the last few year, Goldman one seems like more "powerful".

Aud not good
Sgd not good due to easing (but it actually rises significant right now)
Yuan not good (as may devalue)
Yen Euro not good due to QE.
Emerging currencies not good due to commodities slump.
Gold also not good
Equities market also not good.

Everything not good then.

The answer is no.
Country cannot "bankrupt" one, and the debt problem is actually solvable.

Those debt incurred actually can be easily solved one through restructuring of debt, disposal of asset to repay etc.
It is not the like the company has nothing but only massive of debt that gov needs to bare.

Just like when you see the a company balance sheet is at positive side, then disregard how much the debt incurred it can be solved one, just depended how it is being done.

The issue is about how it is being handled and trust issue, instead of the debt.
That's why many foreign rating agencies also stated it poses no systemic risk to economy.

To avoid Greece footpath is all about budget deficit. That's why it is very important for gov to trim down the budget deficit level in the coming budget.
A prudent spending and controlling the deficit level is the key for RM long term.

For time being, when RM falls, everything in foreign currencies denominated asset are protecting you the RM depreciation, be it
1. Gold is also a foreign currency denominated asset, or specifically USD denominated.
That's why we see identical gain with RM vs USD, while gold itself in USD has been stagnant.
So gold has a function of hedging RM vs USD.

2. Foreign country property
3. Foreign market shares, unit trust
5. Foreign bonds

As long as those foreign currency are appreciating against RM, specifically or majority are in USD term, then they all have a function of hedging against RM vs USD.

Most countries registered zero inflation except for countries that its currencies plummeting one.

Yes, diversification is the one can mitigate the risk, this is why it is always advisable to have a diversification portfolio.

Yes, but this co-relation has broken a bit already since gold stagnant at 1100~1200 level.

Gold stagnant or range bound in this range, while USD up and down on its own.
I guess gold price has hit the bottom, just like it did during 80's to 2000 time.

It is RM fall the worst, while from Sgd, gold price doesn't appreciate as much as from RM pov.

RM is winning the currency war, sadly to say.

Yes, no single trend last forever, now we are entering a new phase or financial order.

This explains and reveals why there is such a volatile movement recently.

Until Yuan can be international traded, it will be limited.

You need a currency that easily being traded offshore and everywhere in the world to become a dominance and highly after by countries all over the world as reserves currency.

GST collection highly may exceed expectation, so it is the one can fill up the gap.

Mind that when inflation hit, aka price of goods rise, GST collection may rise as well as GST is taxed based on the retail price.

So GST is the one can plug the deficit, as long as there is prudent move in term of operation expenses.

Crude should hit the bottom by seeing it stablise quite well in the region of USD 45, although upside is capped on supply glut.

Nevertheless, RM may still at the weak side for near term.

This is the aftermath of bitter pil of QE (after experience sweetness for many years).

Yes, the economy is slow, but still at 4.x%.
When GDP grows at 4.x%, means there will be at least 4.x% increase in disposal income.

There will be still pay increment here and there, although at slower rate.
Labour market out there actually still quite tight, although we keep on hearing VSS here and there.
Just goyang kaki high pay one not available.

Yes, that's the problem faced by inflation, especially in term of individual front.

In term of macroeconomy, it is undeniable, GST collection may go up together with inflation and economy growth despite at a slower pace.

That's the "beauty of GST" as compared to income tax, whereby when company and individual make less profit/income time, tax collected may go down, whilst GST won't face this situation, as long as people need/want to consume goods.
The creator of GST system is indeed "genius".

Don't get me wrong, I don't try paint a "beauty" picture on GST collection or saying deficit is easily plugged by GST collection, just this is what I realised after study the GST system previously.

No doubt, it is difficulty time ahead, and economy growth will face strong headwind near term.

Up marginally compared to previous data, so a piece of small good news for RM.

I see it from the other way, there may be plenty of short seller covering their position in the awaiting budget announcement.

Mind that there may be plenty of short position by large funds.

There is a bit "over-hype" the rate raised issue.

It sounds like end of world...

Seems like the rate hike bet is on the card back with much stronger than expected job data.

USD rally across all currencies strongly, even gold is plunging through the 1100 strong resistance level.

If not mistaken, I came across an article/report saying that foreign currency deposit was surging more than 30% during September period, so liquidity is not a major issue.

Just banks FD portion is not raising as much which banks need to undergo good FD promotion rate to attract more FD, at the same time Basel III does have an effect for bank to chase after more FD.

LTV has nothing to do with higher rate of FD being offered.

It is about FD growth cannot keep up on pace with loan growth.