KL Trader Investment Research Articles

Why is Malaysian Ringgit Weakening?

kltrader
Publish date: Fri, 11 Nov 2016, 11:48 AM
kltrader
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This is a personal investment blog where I keep important research articles relating to KLSE companies.

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. 
 

Discussions
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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

cheeyong

Msia friend with China because Najib know Donald will win the election...

2016-11-11 13:03

danny_dsk

why 3. Malaysia also may cut interest rate further.? why not increase rate?

2016-11-11 16:42

wkitwing

then We will see MYR-USD 3.xx very soon?

2016-11-11 20:35

Blink22

the commanding heights of China is getting more authoritarian and less market friendly.

2016-11-11 20:47

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