Exchange Rates for RM

whoami said:

Just wait till oil shoot up, Ringgit would follow suit. Question is when. Definitely not near future. Very volatile...

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Saudi Arabia seems to have a 5-year war chest to knock out shale oil industry in US, so probably they will not raise price/lower production until end of this year to ensure complete destruction in US. I think the best period to change to MYR is 1st half of 2015.

U.S. shale industry may shrink by 30% -- Ross Perot Jr.
By Alanna Petroff @AlannaPetroff January 21, 2015: 11:22 AM ET

Texas tycoon: Oil prices will go lower

DAVOS, Switzerland (CNNMoney)

Be ready for up to one third of the U.S. shale industry to get knocked out, warns Texan billionaire Ross Perot Jr.

The son of legendary oil magnate Henry Ross Perot Sr. said the recent U.S. shale gas boom was "unsustainable," and now it's time for a bust.

He predicts that crude oil prices could go below $40 per barrel, which would shut down 20% to 30% of the U.S. shale industry as the declining price makes production too expensive.

"I think the world will be shocked how quickly we [shut down production] within Texas," he told CNN during the World Economic Forum in Davos, Switzerland.

U.S. shale producers are pumping nearly 4 million barrels a day, more oil than Iraq.

Crude prices are trading around $47 per barrel, but were trading over $100 in June.

Perot's comments come as a growing number of oil companies announce cuts to jobs, production and investment.

BHP Billiton (BBL) announced Wednesday it was cutting its U.S. onshore rig operations by about 40% this year.

On Tuesday, Baker Hughes (BHI) revealed plans to slash 7,000 jobs and cut capital spending by 20%.

Schlumberger (SLB) also recently announced plans to lay off 9,000 workers and French energy giant Total (TOT) is reportedly slashing capital spending by 10% this year.

But it's not all doom and gloom, according to Perot.

He predicts oil prices will eventually bounce back to about $70 to $80 per barrel over the next two years.

"Things will get back to equilibrium," he told CNN. "The great oil man will continue to move forward ... It's a wonderful time for veteran investors to jump back into the U.S. oil patch."

Perot's main business interests lies in real estate, but he also owns energy operations in Iraq's Kurdish region. He previously owned U.S. shale properties, which were sold in 2008.

http://money.cnn.com/2015/01/21/investing/oil-prices-ross-perot-davos/

The general feeling among locals is 马劳(Malaysians working in SG) 过大肥年... haha

The lack of action by the govt to build reserve on many front will ensure RM$ on a long term slide.

Just changed 2.692 @ bedok

Wow. Will buy some if this persist till this weekend.

bakkuttay said:

Just changed 2.692 @ bedok

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DCputeri said:

Wow. Will buy some if this persist till this weekend.

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Will the psychological 2.9-3 be breached? Then am sure msia Bank Negara will intervene because of the crippling implication unless they really want to gain from exports and made in msia pdts.

Ringgit hits fresh six-year low
Thursday, 22 January 2015
By: TOH KAR INN

PETALING JAYA: The ringgit weakened for a third day in a row, falling to a fresh six-year low against the US dollar amid fresh worries about possible rating downgrades of the country’s debts after the Government revised its fiscal deficit forecast higher.

Fitch Ratings warned that it is “more likely than not” to downgrade Malaysia’s sovereign rating at its upcoming review in the first half of the year.

The ringgit has depreciated 10% over the past three months, as it settled at 3.6172 against the US dollar yesterday.

The Government, in its budget review on Tuesday, had revised the ringgit target to average at 3.55 against the greenback this year, which is weaker than its earlier projection of 3.24.

“The ringgit could also weaken further, depending on the direction of crude oil prices. This is because weaker oil prices will probably prompt short-term portfolio investors to pull their money out from Malaysia,” RHB Research said yesterday.

It expects the ringgit to remain weak and likely to trade at around 3.50 to 3.60 against the greenback in the near term, adding that Bank Negara was not likely to use foreign exchange reserves to support the ringgit.

“We do not expect Bank Negara to hike its key policy rate to take pressure off the currency,” it said.

But while the central bank may refrain from intervening in the market, some analysts believe that it may conduct certain market actions to help smoothen the drop.

MIDF Amanah Investment Bank chief economist Maslynnawati Ahmad believes that local institutional funds have the capacity to support the market.

“But given the still-high volatility, not many will want to enter the market now and may want to wait until there is a sign of stabilisation,” she said.

Meanwhile, the benefits of Malaysia being a net importer of oil is mainly in the long term. Prime Minister Datuk Seri Najib Tun Razak said on Tuesday that the nation’s current account “must remain in surplus” and may be about 2% to 3% of gross national income in 2015, compared with an estimated 5.1% last year.

“The Government may find ways to rely less on oil revenue. If demand in net oil-importing countries picks up, driven by the lower oil prices, exports may increase,’’ she said.

A cheaper currency will be a welcome boost for exporters, giving them a competitive advantage against overseas rivals.

“We do not rule out that the lower deficit target, coupled with the volatile crude oil, could still put pressure on the ringgit,” Kenanga Research said. “Hence, we will continue to focus on sectors such as electrical and electronic, original equipment manufacturers, as well as gloves and plastics packaging.” it added.

http://www.thestar.com.my/Business/...o-trade-around-350-to-360-in-the-n/?style=biz

Now barely RM 2.70 and I heard from my little birds are various developments that some richee from Singapore who wants to retire in Malaysia in the long term are paying RM 2-8million in Cash for their houses. Seems they know that they are saving up to S$400,000 in currency changes since RM 2.40 to RM 2.70... Even if it drop to RM 3, its their own house for retirement and they have no regrets.

No wonder no one got the time to entertain me last weekends.

Oh honeymoon over, sg eases money policy.

Ringgit Falls After Singapore Unexpectedly Eases Monetary Policy
Bloomberg

By Elffie Chew | Bloomberg – 19 minutes ago
(Bloomberg) -- Malaysia’s ringgit dropped after Singapore unexpectedly loosened monetary policy, joining a global round of easing amid slowing economic growth and the risk of deflation.

The Singapore dollar fell as much 1.3 percent against the greenback, the biggest loss since 2010, as the central bank said Wednesday it will reduce the slope of its currency band while sticking with a modest and gradual appreciation. Malaysia’s monetary authority meets today and the consensus in a Bloomberg survey is for no change.

“The ringgit is weakening because of the surprise move by the Monetary Authority of Singapore,” said Jonathan Cavenagh, a foreign-exchange strategist at Westpac Banking Corp. in Singapore. “That’s the main driver.”

The ringgit depreciated 0.5 percent to 3.6142 a dollar as of 9:31 a.m. in Kuala Lumpur, data compiled by Bloomberg show. The currency slid to 3.6277 on Jan. 21, the weakest level since April 2009.

A plunge in oil prices has made the ringgit Asia’s worst-performing currency in the past three months with a 9.5 percent loss. The nation is the region’s only major exporter of the fuel. Cavenagh predicts the ringgit will retreat to 3.65 a dollar in the next few months.

Malaysia will keep its benchmark overnight policy rate at 3.25 percent, according to all 19 economists surveyed by Bloomberg before the 6 p.m. decision local time. Thailand’s central bank also convenes today.

The yield on the nation’s 10-year sovereign bonds dropped two basis points, or 0.02 percentage point, to an eight-week low of 3.90 percent, data compiled by Bloomberg show.

Manhattan said:

Oh honeymoon over, sg eases money policy.

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Almost all mc at arcade 2.67 this morning.

bakkuttay said:

Almost all mc at arcade 2.67 this morning.

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Any idea TT rate?

Good thing I decided to change last night in Superlink at 2.675; initially wanted to wait until Wednesday to get better rates.

Sibor sure to continue its rise as USD continues to strengthen. Ringgit seems to have maintained stability at 2.68 but with MAS new stand, we are unlikely to see 2.8 anytime soon unless oil drops to $30.

Can wait if you do not need the money now.

RedsYNWA said:

Sibor sure to continue its rise as USD continues to strengthen. Ringgit seems to have maintained stability at 2.68 but with MAS new stand, we are unlikely to see 2.8 anytime soon unless oil drops to $30.

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Singapore dollar drives other Asian currencies lower as MAS move may fan regional easing
Published on Jan 28, 2015 1:24 PM

SEOUL (Reuters) - The Singapore dollar on Wednesday hit its weakest in nearly four and a half years, driving losses among emerging Asian currencies, as regional central banks may follow the city-state's unexpected monetary policy easing to tackle deflation.

The Monetary Authority of Singapore (MAS) reduced the slope of its monetary policy band ahead of its scheduled review in April. The central bank also cut its inflation forecast for the year.

Singapore manages monetary policy by controlling the exchange rate, rather than borrowing costs, because trade dominates the economy.

The surprise move sent the Singapore dollar to 1.3570 per U.S. dollar, its weakest since August 2010, on hedge funds selling.

Malaysia's ringgit and Thailand's baht also fell, reflecting perceived risks that the central banks of those countries could surprise with interest rate cuts later in the day.
"Bank of Thailand is a potential candidate. We see risks of a move today," said Jonathan Cavenagh, senior FX strategist with Westpac in Singapore, when asked if other central banks will ease.

South Korea's central bank is also expected to cut its interest rate, he added.

A number of central banks have eased their monetary policy in recent days to cope with deflation and prop up economies, leading to speculation that the U.S. Federal Reserve could take a dovish turn in its post-meeting statement after this week's meeting.

Analysts now assume the MAS's slope in the Singapore dollar nominal effective exchange rate (NEER) appreciation is at 1 per cent per annum, compared to their previously thought 2 per cent appreciation.

They are revising down the Singapore dollar's targets.

Andy Ji, Asian currency strategist for Commonwealth Bank of Australia in Singapore, expected more stimulus in April.

"Another re-centering is still on the cards. It may be possible to ease further in April," Ji said.

MAS earlier said that it would continue to stick with a policy of allowing the Singapore dollar to appreciate modestly and gradually against a basket of currencies, although it would reduce the slope of appreciation.

The city-state's currency has been suffering from a sluggish economy and slowing inflation. Some investors had already expected the central bank to ease monetary policy in the upcoming review in April.

The Singapore dollar was the second-worst performing emerging Asian currency after the Malaysian ringgit so far this year with a 1.9 percent depreciation, according to Thomson Reuters data.

The ringgit fell, tracking the weakness in the neighbouring Singapore dollar.

The Malaysian currency found some relief as investors sold the Singapore dollar against the ringgit.

Still, the ringgit stayed under pressure on risks of a central bank rate cut later in the day.

Bank Negara is expected to keep its key interest rate unchanged at 3.25 percent, as the country's economy remains at risk from a slump in oil prices and a weakened currency, a Reuters poll showed.

The baht fell as offshore funds and local traders, betting a rate cut later in the day.

"What the MAS did today may put pressure on the BOT," said a Thai bank currency trader in Bangkok.

In a Reuters survey on Monday, the Bank of Thailand was expected to leave its policy interest rate steady at 2.00 percent.
- See more at: http://www.straitstimes.com/news/bu...ower-mas-move-may-fan-re#sthash.0Etp4rj2.dpuf

DCputeri said:

Can wait if you do not need the money now.

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Managed to get 2.665 at MC Plentong where pasar malam is.

No need to rush for RM$.

Let it free fall.

Those paying in cash whom yet to change to ringgit ; and those whom take a long term loan are both winners.

Free fall does no good to anybody. It comes as a package with hyper inflation and bankruptcies. I prefer controlled depreciation of myr.