Ringgit Malaysia on the Slide!!!

Ringgit Malaysia Selling.

It's on a downward spiral. Looks like the down south trend is just the beginning leading to the impending raise in US, as early as 1st QRT 2015 from its near zero rates. The Ringgit may bottom out at RM 3.40 to RM 3.50. Some currency experts claims it may hit RM 3.60 to USD 1.00. However Central Bank of Malaysia may intervene to address the slide. See the history ringgit to USD chart below.

The recent Ringgit Malaysia selloff maybe triggered by the followings:-

1. Flight of funds from money market class back to USA from years of almost zero cost of fundings - a beneficiary of US QE's.

2. Currency traders selling thus locking in profits.

3. Bonds holders of MGS sold ringgit and converted to UDS.

4. Foreign investors has being selling and last week it shot up to almost close to RM 840million.

As always when the selling is well and over the bargain hunters will be back.

So till then let's also do our own cherry picking now.

The lesson learned from the past, as fast as it plunge the recovery is equally fast if not faster.

Cheerios

TJ Lim