1. Look at US 10 year treasury yield. Capital is flowing back with higher US yields.
2. Trump policy is also to deregulate oil and shale sector in US. This will make drilling cost cheaper and make US produce more oil to become self-dependant. Currently, 15% of US oil supply is imported. If US increases oil production, there may be a supply glut. Oil price should also be weak these days. A weaker oil price means Malaysia will be affected since our budget has been based on an assumption of oil price at $45.
3. Malaysia also may cut interest rate further.
4. Foreign holdings in malaysia government bond is quite high. Some may mature in near term and investors may not consider to reinvest in Msia since US yields are picking up. Hence, moving capital back to US.
Created by kltrader | Dec 17, 2024
why 3. Malaysia also may cut interest rate further.? why not increase rate?
2016-11-11 16:42
the commanding heights of China is getting more authoritarian and less market friendly.
2016-11-11 20:47
ImCK
dont think malaysia will cut rate Ringgit will back soon money backup from china
ask your self in asia which country is china best friend comfirm is malaysia
2016-11-11 12:48