Exchange Rate in Malaysia
Malaysia - Exchange Rate
Ringgit falls to lowest level in over a decade
On 11 November, the ringgit traded in offshore markets dropped to its lowest level in in over a decade, following Donald Trump’s victory in the U.S. presidential elections. According to Thomson Reuters data, the ringgit’s one-month non-deliverable forwards lost 3.7% from the previous close to 4.54 MYR per USD, which was the weakest since September 2004. The sudden plunge was triggered by a large sell-off of emerging market government debt, as investors expect higher interest rates and reduced imports from Asia under Trump’s presidency. While Malaysia’s economic fundamentals remain solid—GDP accelerated to 4.3% in Q3—Trump’s proposed protectionist policies would affect investor sentiment in Asia’s export-led economies. Meanwhile, on the same day, the ringgit’s spot price settled at 4.29 MYR per USD, which weakened to a level last seen at the beginning of this year.
With the ringgit weakening, Malaysia’s Central Bank quickly intervened in the onshore market, making sure that the spot rate vis-à-vis the U.S. dollar remains stable. The Central Bank acknowledged the intervention and stated, on 11 November, that it will ensure that the markets do not price the ringgit out of sync with the economy’s underlying fundamentals, while also providing the necessary liquidity in the forex market.
FocusEconomics Consensus Forecast panelists expect the ringgit to trade at 4.12 per USD at the end of this year. For 2017, the panel projects the ringgit to trade at 4.10 per USD.
Malaysia - Exchange Rate Data
|Exchange Rate (vs USD)||3.28||3.50||4.29||4.49||4.05|
5 years of economic forecasts for more than 30 economic indicators.
Malaysia Exchange Rate Chart
Source: Thomson Reuters.
|Bond Yield||4.08||0.15 %||Jan 30|
|Exchange Rate||4.11||0.0 %||Jan 30|
|Stock Market||1,684||-0.29 %||Jan 30|
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April 11, 2019
Industrial production grew 1.7% year-on-year in February, down from January’s 3.2% growth and marking an eight-month low.
April 2, 2019
The downturn in Malaysia’s manufacturing sector worsened in March, with the manufacturing Purchasing Managers’ Index (PMI) dropping to 47.2 from 47.6 in February.
March 22, 2019
Consumer prices rose 0.2% month-on-month in February, contrasting the 0.5% decline in January.
March 14, 2019
Industrial production grew 3.2% year-on-year in January, which is slightly below December’s 3.4% result.
March 5, 2019
The Monetary Policy Committee (MPC) of Bank Negara Malaysia opted to keep the overnight policy rate unchanged at 3.25% at its 5 March meeting.