Thursday, September 30, 2010

Malaysian Ringgit appreciating

The Star reported that

The ringgit rose to a fresh 13-year high against the ailing US dollar yesterday, tracking gains by other regional currencies, as the prospect of stronger economic growth fuelled speculation of further inflows from overseas funds.
At 5pm yesterday, the ringgit was traded at 3.0846 against the greenback – the strongest level since October 1997.

This may be good news for the country but for Malaysian bloggers who earn US dollars, this trend spells less income in Ringgit after conversion. I'm holding some company stocks and I'm seeing my profits/dividends eroding due to the appreciating Ringgit.

5 comments:

  1. Yeah! Not good for me at all. :/

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  2. Since gold is shooting higher and higher no doubt that USD has to go weaker. Although there is conspiracy theory about the government is letting (on purpose) the USD goes weaker so they can export more.

    Have you heard that the USA is printing new currency called the "Amero"? Speculation: They might recall USD$2 for 1 Amero.

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  3. As a Malaysian, I'm proud to know that our currency has gained strength, despite the related associations with things like inflation, or it being a problem to exporters.

    What you lose in exchange rate, hopefully you have gotten part of it back via appreciation of stocks.

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  4. Tekkaus, unfortunately, some things are not within our control but we can be consoled that it would not be a case of 1:1 anytime soon, if ever.

    Ai Shiang, I've read about it. Only time will tell if it'll materialise.

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  5. Shingo, there are pros and cons like everything else. Hopefully, the pros outweigh the cons for everyone.

    Yeah, bonus issues somewhat offset the forex losses.

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