Argentina's currency collapses to an all-time low as it asks the IMF for emergency funds
Investors are increasingly concerned Latin America's third-largest economy could soon default as it struggles to repay heavy government borrowing.
The peso is down more than 45 percent against the greenback this year, exacerbating pre-existing fears over the country's weakening economy and inflation running at 25.4 percent this year.
https://www.cnbc.com/2018/08/30/argentina-c...d-imf-plea.html

The Central Bank of Turkey increased its benchmark interest rate on Thursday to 24 percent, a hike of 625 basis points from the previous rate of 17.75 percent. The Turkish lira jumped more than 5 percent on the news, firming to around 6.1 against the dollar.
https://www.cnbc.com/2018/09/13/lira-jumps-...24-percent.html

Continue from
v1 : https://forum.lowyat.net/topic/3461956/+2500
v2 : https://forum.lowyat.net/topic/3704916/+2440
v3 : https://forum.lowyat.net/topic/3793092/+3300
v4 : https://forum.lowyat.net/topic/3995728/+3100

2014
31/12/2014 - 3.4965

2015
31/3/2015 - 3.7035
30/6/2015 - 3.7730
30/9/2015 - 4.3955
17/12/2015 -4.3135 (US Fed Reserve increase int rate)
31/12/2015 - 4.2935

2016
29/1/2016 - 4.1550
29/2/2016 - 4.2050
31/3/2016 - 3.9020
29/4/2016 - 3.9035
31/5/2016 - 4.1290
30/6/2016 - 4.0225
13/7/2016 - 3.9865 (BNM reduce OPR by 25bps)
31/7/2016 - 4.0535
30/8/2016 - 4.0495
30/9/2016 - 4.1455
31/10/2016 - 4.2040
30/11/2016 - 4.4660
30/12/2016 -

*29/9/2015 - 4.4565 (Highest)
*29 & 30/11/2016 - 4.4660 (New High)

dollar index has been rising, majority of government debts(around the world are ARM) are denominated in USD, as long USD is the major reserve currency, USD will become the most attractive major currency to hold , especially US Treasury Bills, this would push the US dollar higher.

Previous Malaysian government has screwed up our finances, our ringgit has been recoupled with oil by Lim Guan Eng idiot, we have about 35% dependency on oil, thus with the drop of oil price: our currency has crashed.

I do not think Saudi Arabia or Russia is going to back down within the next 6 months until US shale oil producers fail to pay their debt and go bankrupt,oil price should drop to USD20-25/barrel.

Once oil price increases or GST is reintroduced(which is only possible with COVID-19 vaccine discovery ,proper cure or massive reduction in COVID-19 cases).

My assumption, COVID-19 cases will be curtailed in the next 3-4 months, so I am expecting drop of ringgit to USD around RM4.70-4.80 against 1 USD prior achieving year end target of around RM4.40 against 1 USD with year end target of USD35-40/barrel oil price and 6% GST.

as rm has depreciated, mean imported items (e.g rice, flour, feeds, textile, steel, etc) price will rise i.e inflation will likely the next wave to hit the economy.

“We welcome the prime minister’s guarantee over the food supply but at the same time, PH would like to raise a few questions regarding the food guarantee.

“The food supply guarantee was made without any explanation on the mechanism on how we can ensure that our food will be enough,” said Saifuddin, who was formerly domestic trade and consumer affairs minister.

He pointed out that Malaysia does not produce enough food for its population and had to import RM51 billion worth of food items including meat, fish, onions and assorted vegetables last year.

He explained that the most of the country’s food imports come from China and Europe.
https://www.malaymail.com/news/malaysia/202...ing-cov/1847383

RM only weakens against USD.... this is USD strength instead of RM weakness. RM strengthened against SgD, AUD and Pound. Still ok la...