Malaysian ringgit in losing streak

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Ringgit countingMalaysia’s currency, the ringgit, is currently in its longest losing streak against the US dollar since 2005. The ringgit dropped to almost 3,30 a dollar on December 26, its lowest since September and a continuation of a nine-week straight decline.

If the ringgit extends the decline, it is likely to reach the 3.31 zone, analysts say, adding that the weakness is largely driven by the US Fed’s tapering announcement earlier in December. What’s also happening is that at year-end a lot of dollar shorts are being covered.

One effect of the drop in the ringgit is that palm oil prices advanced significantly amid improved prospects for exports from the world’s second-largest producer, Malaysia, because the weaker ringgit makes palm oil more competitive against other oil sorts, especially soybean oil.

To address the issue, Malaysia will strengthen its fiscal policy to handle the impact of tapering, Second Finance Minister Ahmad Husni Hanadzlah said.

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Reading Time: 1 minute

Malaysia’s currency, the ringgit, is currently in its longest losing streak against the US dollar since 2005. The ringgit dropped to almost 3,30 a dollar on December 26, its lowest since September and a continuation of a nine-week straight decline.

Reading Time: 1 minute

Ringgit countingMalaysia’s currency, the ringgit, is currently in its longest losing streak against the US dollar since 2005. The ringgit dropped to almost 3,30 a dollar on December 26, its lowest since September and a continuation of a nine-week straight decline.

If the ringgit extends the decline, it is likely to reach the 3.31 zone, analysts say, adding that the weakness is largely driven by the US Fed’s tapering announcement earlier in December. What’s also happening is that at year-end a lot of dollar shorts are being covered.

One effect of the drop in the ringgit is that palm oil prices advanced significantly amid improved prospects for exports from the world’s second-largest producer, Malaysia, because the weaker ringgit makes palm oil more competitive against other oil sorts, especially soybean oil.

To address the issue, Malaysia will strengthen its fiscal policy to handle the impact of tapering, Second Finance Minister Ahmad Husni Hanadzlah said.

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