The weirdest thing about the Ringgit currently is that although oil prices increased at certain time, the ringgit didn't appreciate proportionately, It's safe to say that the "political environment" is the key factor of the depreciation of the Ringgit apart from the Fed's rate hike ?

Malaysian ringgit likely to continue depreciating until end-2017, says Scotiabank
http://www.econotimes.com/Malaysian-ringgi...otiabank-449265

The weirdest thing about the Ringgit currently is that although oil prices increased at certain time, the ringgit didn't appreciate proportionately, It's safe to say that the "political environment" is the key factor of the depreciation of the Ringgit apart from the Fed's rate hike ?

with rate hike and more coming in 2017...

us bond yield 2.582%

$ index 102.3

yen.. 117

euro.. 1.05

sgd.. 1.437

rm.. 4.461
i would think rm should be closer to 4.50 by now if not for...

bursa and mgs should see a bit more selling.

if wanna buy fx, good time now, i wud say.
anyway, what we see today.. was anything unexpected?

Everything was in line with expectation just maybe for the 3 rate hike forecast which is extra info.

But would expect the myr to weakened and probably rebound only on next year.

I think the 25bp hike is priced in everywhere already,... no issue there,..

The only mkt movers are :-

1) the no of hikes next yr.
2) the tone of the Fed Chair.
3) how the Fed Chair intends to work with DT.

I think 2) and 3) above contradicted mkt expectations highly, hence the selloff seen now.

yep, the 25bps was pretty much 99% priced in.

the continued strength of the $ and falling bond prices is a result of the hawkish stance for 2017 in the messages.

and so, here we go again... given all that has happened...

what WILL sustainably appreciate the RM in 2017?

more controls? raise taxes, hike int rates? cut budget spending? austerity?

we already have an idea, don't we?

how will other financially mismanaged economies manage this onslaught?
one good thing came out of this fed saga - oil prices retreated to 50.xx.

that will ease some pressure off a potentially hefty petrol price incr on 1 jan 2017.

Why the dollar rally may just be getting started

After the Fed's call, the dollar index, which measures the greenback against a basket of currencies, jumped as high as 102.62, its highest since 2003, from under 101 before the decision.
http://www.cnbc.com/2016/12/14/why-the-dol...ng-started.html

ooo....

$ index 103.10

euro 1.04
yen 118.5

rm still at 4.46, nice of bnm!

Last week they burn 90 billion to maintain that rate.

This week they will burn another 180billion.

Last week they burn 90 billion to maintain that rate.

This week they will burn another 180billion.

Hong Leong IB expect the ringgit to move around 4.20 - 4.50 range next week..

And 4.10 - 4.40 range next year..

Malaysia is reportedly one of Asia’s worst-hit economies in the face of rising US interest rates and the dollar.
According to Wall Street Journal today, foreign investors sold US$5.3 billion of Malaysian stocks and bonds in November, the largest monthly outflow since September 2011, according to ANZ Bank.
"That is almost a quarter of the US$22.1 billion pulled from emerging markets in the region, excluding China," wrote WSJ.
The bulk of this, it said, was US$4.5 billion of bonds, the biggest monthly debt outflow on record, according to ANZ.
This comes as the ringgit continues to slide amidst a loss of market confidence in the country's financial standing, of which the growing 1MDB scandal is one of the contributing factors.
"Despite the government’s various attempts to support the currency, the ringgit has lost 6.5% of its value against the greenback since the US election, hitting a nearly 19-year low on Nov 30.
"On Thursday, the currency weakened 0.9%, following the Federal Reserve’s announcement of its first rate increase in 2016," wrote WSJ.
"Malaysia’s Achilles' heel is the high level of foreign ownership of its government bonds.
"Foreign money is flighty, a factor that can accelerate a liquidity crunch during times of stress," the financial daily reported.
Read more: https://www.malaysiakini.com/news/366301#ixzz4SyHxLmOA

clever prediction!

if u go to HLB or Ambank or CIMB now, you will pay >4.50 for $1.

already saw that in Ambank 2 days ago.

why cant they make all exporters convert 100% of their usd proceeds into myr? better let the exporters defend the ringgit.

BNM ruling impeding growth, says Top Glove
FMT Reporters | December 16, 2016
World’s largest glove manufacturer unhappy with directive requiring exporters to convert 75% of their proceeds into ringgit, as it reports a 43% decline in quarter one profits.
http://www.freemalaysiatoday.com/category/...says-top-glove/