Malaysian ringgit in losing streak

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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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. 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...

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.



Support ASEAN news

Investvine has been a consistent voice in ASEAN news for more than a decade. From breaking news to exclusive interviews with key ASEAN leaders, we have brought you factual and engaging reports – the stories that matter, free of charge.

Like many news organisations, we are striving to survive in an age of reduced advertising and biased journalism. Our mission is to rise above today’s challenges and chart tomorrow’s world with clear, dependable reporting.

Support us now with a donation of your choosing. Your contribution will help us shine a light on important ASEAN stories, reach more people and lift the manifold voices of this dynamic, influential region.

$
Personal Info

Donation Total: $10.00

 

 

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