Malaysian ringgit

Malaysia's markets show no post-election panic

(May 14): Malaysia’s markets showed few signs of investor panic as trading reopened after Mahathir Mohamad swept to power in a surprise election outcome.

Stocks and the ringgit recovered from an early slump to climb higher, as concerns over an untried government were allayed by the appointment of experienced advisers including a former central banker and finance minister. Bonds pared losses.

Promise of higher dividends mitigate currency risk for LY Corp, says NRA Capital

SINGAPORE (Jan 30): NRA Capital likes LY Corporation, the original design manufacturer of wooden bedroom furniture, for what it sees as a positive mix of growth and dividend plans to come.

While potential appreciation of the Malaysian Ringgit presents a key risk to the group’s profitability, NRA believes this will be mitigated by the promise of a higher 40% payout of PATMI for FY18-20, up 25% from 25% for FY17.

Malaysian ringgit expected to remain strong after reaching year high

SINGAPORE (Nov 17): The Malaysian ringgit (MYR) on Wednesday reached a one-year high against the USD at 4.1745. And due to encouraging domestic and external factors, economists expect the MYR to remain strong.

Uncertainty over the US Republican party’s tax bill has caused the USD to weaken, partly contributing to the ringgit’s strength, says RHB Research Institute.

Complacency is a dangerous issue when taming Asia’s most volatile currencies

From Bloomberg

(Aug 14): Policy makers in Indonesia and Malaysia have been so successful in quashing currency volatility that this is breeding a new danger: complacency.

Traders are being deprived of the experience to cope when fluctuations inevitably return, according to PT Bank OCBC NISP in Jakarta. At the same time, companies may cut back on hedging, exposing themselves to potential losses, says PT Sinarmas Sekuritas.

Can ringgit strength be sustained?

Malaysian ringgit

(May 8): The Malaysian ringgit is turning out to be the best-performing currency in the region, so far this year. This is a sharp reversal of its fortunes, after being heavily sold down in November-December last year.
I believe this has much to do with our improved exports and outlook, and in particular Bank Negara’s new ruling (announced in December), which mandates that at least 75% of all export proceeds to be converted into the local currency.

The future of the Malaysian ringgit

SINGAPORE (March 6): Last May, a 128-gigabyte Apple iPhone 6s Plus in Malaysia cost RM3,699. At the exchange rate of SGD1:RM2.85 then, that would have been around $1,298 –about the same as the retail price in Singapore.

At today’s exchange rate of RM3.16 though, Singaporeans can get the same phone for $1,170 in Malaysia. With the phone selling in Singapore for $1,218, they could save around $50.

It’s not such a good deal for Malaysians coming to Singapore though.

5 reasons why Malaysia should not blame ‘Trump tantrum’ for ringgit woes

SINGAPORE (Nov 24): The Malaysian ringgit has been Asia’s worst-performing currency since Donald Trump’s surprise win at the US presidential election on Nov 8. And fingers have been kept busy pointing at “Trump tantrum”.

But there is more than meets the eye, according to columnist William Pesek.

In his article “Trump Tantrum Puts Malaysia in Spotlight” in Barron’s Asia, the correlation between Trump’s victory at the polls and the continued slide of the ringgit is not as simple as it seems on the surface.

Malaysia seeks to nix '98 parallel as it herds ringgit bears

SINGAPORE (Nov 21): Malaysia’s attempt to cajole currency traders to stop selling down its plunging ringgit is evoking memories of 1998 capital controls among global banks -- a comparison policy makers were quick to discourage.

Emerging markets are down hard, but not yet out

Emerging markets

NEW YORK (Nov 14): The selloff in emerging markets after Donald Trump’s US presidential election was intense. A closer look reveals that things aren’t as bad as they might seem.

While local-currency bonds suffered their biggest losses last week since 2008 following the Republican’s surprise victory, a gauge of volatility in developing-market currencies remained 16% below the levels seen in February. The cost to hedge against foreign-exchange losses is 38% cheaper than it was in August 2015 when China’s yuan devaluation rattled global investors.

No break for worst Asian currency as clouds gather over Malaysia

Malaysian ringgit

KUALA LUMPUR (Aug 4): The bad news just doesn’t stop for Asia’s worst-performing currency.

Already reeling from a renewed slump in oil prices and a political scandal that just won’t go away, the Malaysian ringgit is now facing the prospect of another cut in interest rates. It’s the region’s biggest loser in the past three months and analysts still see scope for it to drop more than 2% by year-end.

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