Ringgit to decline to 4.15 versus US dollar next week
Publish date: Sat, 25 Jun 2016, 03:23 AM
KUALA LUMPUR: The ringgit is likely experience further correction next week to RM4.15 per US dollar following the shocking referendum by Britain to exit the European Union (EU).
Affin Hwang Investment Bank Vice-President/Head of Retail Research, Datuk Dr Nazri Khan Adam Khan, said the correction was a knee-jerk reaction and was out of regulatory control as it also happened in other emerging economies.
"Nevertheless, the situation provides an opportunity to buy cheap. But what is more important is that investors' psychology and hopefully there is no panic selling," he told Bernama.
For the holiday-shortened week just-ended, the ringgit was traded mostly higher against the US dollar driven by optimism on Britain staying in EU but the sentiment quickly faded on Friday after vote to exit the economic bloc took the lead during vote counting.
The market was closed on Wednesday for the Nuzul Al-Quran holiday.
On a Friday-to-Friday basis, the local unit was higher at 4.0850/0950 against the US dollar from 4.0970/0030 in the previous week.
It also ended higher against other currencies except for the yen.
The ringgit was up against the Singapore dollar to 3.0148/0246 from last week's 3.0332/0397, appreciated against the British pound to 5.6806/6961 from 5.8550/8652 previously and rose against the euro to 4.5450/5573 from 4.6112/6196 previously.
However, it fell against the yen to 3.9668/9777 from the previous week's 3.9277/9350. -- BERNAMA
Discussions
Be the first to like this. Showing 16 of 16 comments
there must be some fundamental reason...
I wonder if our exports are more defined in terms of EURO compared to Dollar? Isn't our major export is to U.S compared to Europe....
2016-06-25 17:16
crude price appear lower in terms of USD as USD had strengthen against EURO.
Its like Europe is the major consumer of the Fuel and they can only afford to buy at X Euro....when USD strengthens...they still can only pay X Euro and thus its trading price in USD drops...
but this does not change its value in terms Euro - X.
As for Malaysia...their concern is getting paid in RM say Y ringgit per ton....so when the USD trading price of crude oil drops...the RM has to weaken accordingly to get back the RM they used to get earlier , i,e Y ringgit per ton.
Ok...now makes sense.
2016-06-25 17:32
'tsunami' effects takes longer to come to the shore...after an 'earthquake'.
http://money.cnn.com/2016/06/23/investing/eu-referendum-markets/index.html
'cause' just started...'effects' is yet to be fully unleashed!
2016-06-25 20:45
George Soros is back to attack every currency,
Ringgit once again prove its lousiness to the market
I believe the BNM finally lack of resource to defend the currency now.
2016-06-25 21:29
1997 to now
I had waited for nearly 20 years
Finally it is backed again
2016-06-25 21:36
EPF seem to invest billions of fund into the EU market, their mass selling could be the reason behind the weak currency
2016-06-25 21:42
May be Dr. M personally requested his help (Mr. Soros)now.....so that can find an excuse to topple Mr. N...
2016-06-25 21:43
Dr. M had been active invite foreign intervention, but it isn't easily to make a market sanction in a short time, even Soros has little impact to the market, unless it involves a large group of powerful individual, to the scale of a country, so far only Uncle Sam can declare economy sanction to a country and it is still not guarantee to kill their market.
2016-06-25 21:50
Iran has only perhaps started to use 10% of its crude oil production facility...
2016-06-25 22:13
How Brexit affects Oil price..
and thus RM:
http://www.nasdaq.com/article/how-the-brexit-vote-will-impact-oil-prices-cm638230
2016-06-25 22:34
Can anyone clarify if I have to pay rm 4.15 to purchase a usd or if I sell a usd, I will get 4.15 rm... Thanks.
2016-06-26 11:22
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actually....I am curious to know why RM or asean currency is more influenced by EURO than USD?
I can understand Brexit has weakening effect on EURO...but why must RM be influenced negatively instead of positively as it is for USD?
2016-06-25 17:03