Ringgit weaken to 3.23 vs USD

Weeks ago we forecast potential surprise interest cut. The reason behind is many central banks embarking devaluation of its currency to maintain its competitiveness of their export.

Lately due to some China data and lower GDP in the first half. Economists are suggesting the recent RM weakness is due to this plus certain US funds pull out from KLSE. (What a joke when net buying by foreign funds is positive for more than months)

Personally, we feel that it may not be intervention or no action from BNM to allow RM drop via basket of exchange instead of interest rate. BNM lowered RM by other method. I would not say is a bad move but will give us a strong signal that BNM is always intend to maintain a weak RM to protect our export.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Create a free website or blog at WordPress.com.

Up ↑

%d bloggers like this: