MYR (Malaysian Ringgit)

MYR (Malaysian Ringgit)

Postby winston » Thu May 22, 2008 1:53 pm

MYR's Direction

Among the gainers in the region, Malaysia's ringgit rose for a second day on speculation the central bank will favor a stronger currency, choosing to focus on fighting inflation over growth.

The nation's economy has enough ``flexibility'' to withstand any global economic slowdown as consumer spending at home increases, Second Finance Minister Nor Mohamed Yakcop said this month.

The ringgit traded at the strongest level in more than a week as Malaysia's inflation accelerated to the fastest pace in 14 months in April, a government report showed yesterday.

``Central banks are likely to keep using their currencies to fight inflation,'' said Yahya Mohd Nor, head of currency trading at Affin Bank Bhd. in Kuala Lumpur.

The ringgit traded at 3.2099 per dollar from 3.2215 late yesterday, according to data compiled by Bloomberg. The currency may rise as high as 3.1950 today, Yahya said.

Traders increased bets the ringgit's appreciation will gain momentum in the next 12 months, according to non-deliverable forwards contracts. The currency will reach an implied rate of 3.1869 per dollar, compared with 3.2605 a week ago, according to the forwards. The contracts are agreements in which assets are bought and sold at current prices for future delivery.

Source: Bloomberg
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Re: MYR

Postby winston » Sat Dec 10, 2011 7:00 am

I was in JB recently and managed to chat with some of the business people there. Some of them also do business in Singapore and follow the rate of exchange between the SGD and MYR, very closely.

I told them that I'm extremely worried about my large exposure to the SGD and am looking to buy some MYR, to diversify away my currency risk.

I learnt from them that December and January are not good times to buy the MYR against the SGD.

That's because at year end, a lot of Malaysians ( that are working in Singapore ) will be getting their bonuses and will be converting their SGD into MYR, hence depressing the exchange rate.

I was a bit skeptical until they brought me to see the rows and rows of money changers in JB, that cater to those Malaysians that are working in Singapore.
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SGD

Postby Chinaman » Wed Jul 11, 2012 9:15 pm

kennynah wrote:too strong liao

Today pass-by Acade....up the escalator left hand side, waulah infront the money changer store people mountain people sea.

S$100 = RM 250.

Boss understand u invest in Myr cash..how u do it...can tell or not?
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Re: SGD

Postby kennynah » Thu Jul 12, 2012 1:16 am

brudder, not me. maybe winston has interests in RM. only time RM is of concern to me is when i visit their mountain god 8-)

Chinaman wrote:
S$100 = RM 250.

Boss understand u invest in Myr cash..how u do it...can tell or not?
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Re: MYR

Postby Chinaman » Thu Jul 12, 2012 10:11 pm

just open a malaysia account today...so that i can internet transfer S$ account to MYR account in JB.

thereafter park the MYR in their FD to get 3% p.a.

Not a bad idea hor...as at today the bank exchange rate is 1 S$ = 2.46 MYR, bank rate sure loss to money changer we hv to accept that.
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Re: MYR

Postby iam802 » Thu Jul 12, 2012 10:20 pm

even their banks in Singapore offers better FD rate than the local banks.
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2. The trend will END but I don't know WHEN.

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Re: MYR

Postby kennynah » Thu Jul 12, 2012 11:03 pm

then pray n hope ringgit doesn't get weaker in a year

Chinaman wrote:just open a malaysia account today...so that i can internet transfer S$ account to MYR account in JB.

thereafter park the MYR in their FD to get 3% p.a.

Not a bad idea hor...as at today the bank exchange rate is 1 S$ = 2.46 MYR, bank rate sure loss to money changer we hv to accept that.
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Re: MYR

Postby Chinaman » Thu Jul 12, 2012 11:34 pm

kennynah wrote:then pray n hope ringgit doesn't get weaker in a year

Chinaman wrote:just open a malaysia account today...so that i can internet transfer S$ account to MYR account in JB.

thereafter park the MYR in their FD to get 3% p.a.

Not a bad idea hor...as at today the bank exchange rate is 1 S$ = 2.46 MYR, bank rate sure loss to money changer we hv to accept that.


Brudder K,
say, Now i convert S$1ook = RM250k,, park in their FD and get 3% p.a.
Next year say ringgit weaken to S$100k = $230k.

end result : make RM20k plus additional 3% interest ........am i wrong in this concept?
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Re: MYR

Postby winston » Fri Jul 13, 2012 6:16 am

I buy the MYR to diversify my holdings from the SGD, as I dont want my assets to be in the currency of a small country, that cannot withstand a "Black Swan" event.

Image

Floods that happen every 50 years or 100 years seems to be happening every two years :P
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Re: MYR

Postby winston » Sat Jul 14, 2012 9:11 am

Money changers run out of Malaysian ringgit by Linette Lim

SINGAPORE - Some money changers in Singapore on Friday ran out of Malaysian ringgit notes after the favourable exchange rate sparked strong interest from buyers taking the chance to stretch their dollar by picking up ringgit on the cheap.

The Singapore dollar is trading at one to 2.51 Malaysian ringgit, after hitting a 14-year high against the Malaysian currency this week.

The ringgit is under pressure as Malaysia's general election looms and as investors exit emerging Asian markets for safer assets.

Sim Moh Siong, a currency strategist at Bank of Singapore, said: "I think part of the under-performance could be due to the drop in commodity prices, especially in terms of crude oil and palm oil. That seems to be an overhang on the ringgit."

Currency analysts said the ringgit could weaken further this year, on risks from Malaysia's upcoming general election.

This could push the Singapore dollar to 2.55 versus the ringgit within the year, before moderating to 2.45 by end-2013.

Saktiandi Supaat, who is head of currency research at Maybank, said: "It's a reflection also of how market participants see Malaysian assets and also the tolerance level of Bank Negara in terms of allowing some flexibility in the ringgit.

"The ringgit has fluctuated or reacted more than the Singapore dollar to Eurozone and global risks such as growth issues. The structural issues on Singapore dollar restrict the way it reacts."

Global economic uncertainty has caused investors to pull money out of riskier assets like emerging-Asia currencies as they opt for safe haven assets like the US dollar.

The Singapore dollar has also been attracting these investors.

It has appreciated 2.5 per cent against the Thai baht and Indonesian rupiah this year.

Lee Chen Hoay, an investment analyst at Phillip Futures, said: "Because of the Eurozone crisis, it has increased the risk aversion in the market. And you even see things like Switzerland and Denmark being able to issue bonds at negative yield.

"So that means investors are willing to pay more money to get less, to protect their capital. And Singapore, being the only Southeast Asian currency with triple A, has an increased appeal."

Analysts said that should the Singapore dollar continue strengthening versus the ringgit, Singapore companies with operations in Malaysia could see profits take a hit.

However, Malaysian companies with operations in Singapore may see currency gains as they repatriate profits.

Source: CHANNEL NEWSASIA

http://www.todayonline.com/Singapore/ED ... an-ringgit
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