it is a huge economy. they don't raise rates piecemeal as and when they like.

there is a plan to go from A to B to C to D within X years or Y months, i.e. targets.

google bloomberg, cnbc... there are many articles with charts and dots that explain what the fed targets are.

This post has been edited by AVFAN: Dec 5 2015, 01:48 PM

Normalise rates = increasing rates?

So if they increase rates, USD sure will go up and MYR sure will drop right? Will the effect be permanent (remain high) like few years or just a few days like what happen to MYR strengthening power (increase and decrease quickly)?

US people earn USD, whether it rises or drop against other currency, it doesn't matter when the goods is quoted in USD.
An Iphone cost $549, will still cost $549, whether the USD is at RM3.30 or RM4.20.

But for in term of pricing RM, it is not the same case.

The thing is not only us are feeling the strength of the USD. Even Canadian people. And that forum was a computer forum.

"normalized" means a balanced int rate regime in a growing sustainable economy. it is a target, a moving target.

how usd fares with other currencies is relative.

at this time, commodities prices (oil, gas, iron ore, copper, even milk) are at multi year lows, china can't buy more to make more to sell more.

so, commodity export dependent currencies continue to get hammered. non-commodity but consuming countries are enjoying strong currencies - thailand, japan, even singapore.

as the oil rout continues, even saudi is now said to be considering a lower peg of the riyal to the usd. also, will see if brunei can hold the peg to the sgd.


if fed keeps hiking rates to normalize as per plan... the rm will be expected to go down, of course. add low oil/palm oil prices, continued big spending/wastage and incr debt, u already know the direction.

This post has been edited by AVFAN: Dec 5 2015, 02:15 PM

Everyone feeling the USD strength, no escape from it.

But US people earn USD, aka US consumers can buy more goods from others due to its strength.

Currency is traded in pair, when one currency rise, another must drop. If not how can it rises?

Stronger USD mean cheaper import for u.s, higher corporate profit and consumer spending; more export from EU and Japan, good news all round.

This post has been edited by icemanfx: Dec 5 2015, 06:10 PM

as an salaried worker and a consumer, i want as strong a currency as possible - greatest purchasing power. but my employer may restrain my wage increase.

as an exporter, i want a weak currency to beat my competitors but that makes me lazy, since there is no need to improve on productivity and costs.

as a gomen, i want a balance but very often, i can't do it or don't know. so f it!



really, why is it so darn easy for a currency to fall and so darn hard for it to rise?

because even lazy idiots know how to make currencies fall whereas it takes smart responsible brains to make a currency strong and yet sustainable.

that can only be true because if the reverse is true, there is no need for good brains and good governance. we go back to the dark ages.

Purchasing power of salaried worker will b lesser next yr as a lot of Co freeze increment

where u get the indications?

u mean private sector?

since public sector already said x% up, bonus, etc...?

if private sector, that's very bad.

purchasing power already destroyed by weak rm and high inflation.

lagi no gaji naik?

M refer to private sector employees
In addition, a lot of Co didn't declare Bonus too tis yr

if that will be true, chance of recession in 2016.

That is very true

To keep the economy and RM at healthy level, it takes a lot of effort. To destroy it, we just need some idiots, as proven

some companies I know gonna pay 1mth bonus tis year. better something than nothing right

US WTI Crude Oil officially traded < USD40 mark
Last traded at 39.97, down 1.11 or 2.70%

In addition, Brent Crude Oil down 0.84 or 1.92% to USD43
Our Govt have assume USD48 in the 2016 Budget which was tabled on 23rd Oct 2015
Will the Govt revised the 2016 Budget in the near future to reflect the reality of the market?

Jom tanam jagung kangkung di rumah

The current climate is definitely far from ideal, but to go from 4.7 % GDP growth in Q3 2015 to a recession (i.e. 2 consecutive quarters of negative GDP growth) in 2016 seems a little extreme, doesn't it ?

Of course, never say never

Agree with you. We will still experience growth but not at the rate of growth that we have come to expect for next year.

Next week would be interesting for MYR