Chitchat Ringgit drops

[Asterix]

Ringgit hits 4.28 against US dollar, lowest since June 2020​

Syafiqah Salim
/
theedgemarkets.com

April 20, 2022 21:19 pm +08

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KUALA LUMPUR (April 20): The ringgit on Wednesday (April 20) weakened further against the US dollar, depreciating below RM4.28 — the lowest level in 22 months — although crude oil prices have been staying at above US$100 per barrel.
The local currency appears to have diverged from the crude oil price trend in recent months. The ringgit did not appreciate against the greenback when the crude oil prices climbed further as it usually did in the past.
At 6pm, the local note eased further to 4.2800/2830 against the US dollar from 4.2505/2515 at Monday’s close.
Meanwhile, the ringgit also traded mostly lower against a basket of major currencies.

It weakened against the Singapore dollar to 3.1371/1398 from 3.1228/1240 on Monday but the ringgit was stronger against the Japanese yen at 3.3432/3458 from 3.3569/3579 previously.
The local currency was also weaker against the British pound at 5.5781/5820 from 5.5303/5316 on Monday and lower against the euro at 4.6468/6501 from 4.5867/5878.
The US dollar is gaining strength amid expectation that the US Federal Reserve will accelerate its interest hike to tame inflation.
The US Dollar Index — which measures the value of the US dollar against a basket of currencies — surged above 100 for the first time in two years in anticipation that the US Federal Reserve will accelerate its interest rate hikes to tame inflation.
The US Dollar Index was at 100.32 as the greenback hit a 20-year high against the Japanese yen and tested a two-year peak on the euro.

However, DBS Group Research noted the US Fed does not dominate the gyrations in the global rates space.
“Attention has now shifted to the European Central Bank (ECB) and perhaps greater recognition that fiscal policies might stay loose in the eurozone for some time. If the ECB is serious about containing inflation, implied real rates have to climb.
“Aside from the US Fed, only the ECB is able to exert this much influence on global rates. In any case, EUR rates matter and could contribute to the peak duration fear that we expect to be hit in 2Q,” said DBS Group strategists Eugene Leow and Philip Wee in a Monday note.
With the International Monetary Fund (IMF) readjusting its global growth projection to below 4%, most emerging Asian currencies depreciated and remain under pressure, said the research firm, which anticipates the ringgit to drop to RM4.30 against the greenback by the end of third quarter.
“In emerging Asia, the Chinese Yuan depreciated 0.4% to 6.3935 per US dollar, outside its month-long range between 6.36 and 6.38.
“The IMF affirmed expectations for China to miss its official growth target of 5.5% this year. Its latest growth forecast for China was 4.4%, lower than the 4.8% predicted by our economists,” said the strategists.
Kathy Fong

 

[syed putra]

It will continue to drop.
Despite high oil prices, every usd rise will cost umno gomen even more in subsidies. High oil price means country loses but Petronas gains. Both are separate,

 

[laksaboy]

Silly Sinkies still think ringgit drop = Malaysia cannot make it = more bargain hunting in JB.

Forex is a double-edged sword, both when the rate is rising or falling.

 

[tobelightlight]

Silly Sinkies still think ringgit drop = Malaysia cannot make it = more bargain hunting in JB.

Forex is a double-edged sword, both when the rate is rising or falling.

Still 1 sgd to 3 ringgit. Nothing to shout about.

 

[Willamshakespear]

The fall or rise in the value of a nation's dollar lays within the control of its Central Bank, whom have tools to direct monetary movements based upon its monetary policies. Thus the fall in the value of the Ringgit comes as no surprise - with the fall, its exports will be cheaper meaning MORE foreign purchasers & investments pouring into Malaysia, after 2yrs of COVid restrictions that had starved its people, & need to increase govt revenues.

As Malaysia export more than import, being a self sufficient nation with huge hinterland of arable lands for farming & habitation, it loses nothing but have much to gain in earning revenues for social expenditure from exporting. Being self sufficient, it need not import much, as the country has all it needs to feed its citizens.

Much of its oil wealth had been distributed to its citizens through govt subsidies. While US oil exports went down in costs, Malaysia's oil exports did not, and with its holding on to $100 & with the RUS-UKR war causing disruptions in oil supply, it is hoped that it would be sufficient to bring in revenues for social expenditures.

Whether the Ringgit will fall further or rise back will depend on Malaysia's Central Bank efforts thru direction from its leaders, & its treasury condition - when it is full to fund social expenditures or at least meet present commitments to its citizens for medcare, education, infrastructure, etc.

How will it affect Singapore?

As Singapore has no or little arable lands, its revenues come from trade, being a port city. Thru our Central Bank efforts, it is holding on to its own level against a basket of currency & to the US dollar which is the wanted form of trade exchange value. The rise or fall of the Spore dollar is minimal, & is still attractive for foreign purchasers & investments, based upon many factors than just monetary policy alone.

However, with the Ringgit's fall, much of our imports which comes from Malaysia, it would mean our dollar is being exchanged for Ringgit, thus causing the Sing dollar to fall eventually should MORE of Sing dollars are exchanged. $1 exchanged for RM$ would not make a difference, but with BILLIONS are exchanged for RM$, it would be significant.

Local Importers of goods or services do have a role to play in such dollar exchanges. If they continue to buy goods cheaply from Malaysia, BUT sell it HIGH here in Spore, they will get rich quickly & only for the short term, as Spore to Malaysia is only a bridge away for citizens to get goods cheaper & freely from Malaysia, & support Malaysia's effort to boost its economy. No point claiming smuggling, etc, etc.

Such are only excuses for mere individual profit lust & NOT innovative, fair thinking, to compete in the free market, which citizens can now not only buy from Malaysia, but from ALL over the World thru online purchasing which can be cheaper for necessary goods or staples, & citizens thus will have MORE money in their wallets to CIRCULATE $$$ in Spore.

 

[tanwahtiu]

Having a disgusting lazy, stupid race as your neighbours shamed the region.

Cannot run the country, lease out their lands for 200 years, don't have to do anything but collect passive income is enough...

 

[gingerlyn]

jb massage parlour insist to collect sgd from singaporeans

 

[tobelightlight]

jb massage parlour insist to collect sgd from singaporeans

why need to go to massage parlour? there are so many things to do in jb.

 

[winners]

Having a disgusting lazy, stupid race as your neighbours shamed the region.

Cannot run the country, lease out their lands for 200 years, don't have to do anything but collect passive income is enough...

DO YOU KNOW THAT YOUR MOTHER IS THE TYPE THAT FUCKS UNTIL CANNOT BE FUCKED ANYMORE? WHY? BECAUSE HER CHEE BYE BECOMES SO STINKING CHAO THAT WHEN THE DOG SMELLS, THE DOG DIES.

You claim Malays to be disgusting lazy and stupid, but at least they still earn an honest day of living, unlike your bastard Tiongs who go about cheating everyone without any sense of shame at all. Pui to the maximum. I would say that the Tiongs deserve to suffer heavy losses from their Country Gardens and Forest City projects in Johor.

 

[tanwahtiu]

DO YOU KNOW THAT YOUR MOTHER IS THE TYPE THAT FUCKS UNTIL CANNOT BE FUCKED ANYMORE? WHY? BECAUSE HER CHEE BYE BECOMES SO STINKING CHAO THAT WHEN THE DOG SMELLS, THE DOG DIES.

You claim Malays to be disgusting lazy and stupid, but at least they still earn an honest day of living, unlike your bastard Tiongs who go about cheating everyone without any sense of shame at all. Pui to the maximum. I would say that the Tiongs deserve to suffer heavy losses from their Country Gardens and Forest City projects in Johor.

I KNOW THAT YOUR WIFE IS THE TYPE THAT FUCKS UNTIL CANNOT BE FUCKED ANYMORE?
BECAUSE HER CHEE BYE BECOMES SO STINKING CHAO THAT WHEN THE DOG SMELLS, THE DOG DIES.

 

[winners]

I KNOW THAT YOUR WIFE IS THE TYPE THAT FUCKS UNTIL CANNOT BE FUCKED ANYMORE?
BECAUSE HER CHEE BYE BECOMES SO STINKING CHAO THAT WHEN THE DOG SMELLS, THE DOG DIES.

KNNBCCB. ALWAYS COPYING WORDS FROM MY POST. COME UP WITH SOMETHING ORIGINAL, LOSER. OR DO YOU NEED ME TO ALSO TEACH YOU HOW TO FUCK YOUR GONG CHEE "BYE" MOTHER?

@tanwahtiu LEH KAO LOU MOU = TAN WAH TIU FUCKS YOUR OWN DOGGIE MOTHER (BITCH).