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||3.60||0.15 %||Jul 31|
|Exchange Rate||4.13||0.0 %||Jul 31|
|Stock Market||1,635||-0.29 %||Jul 31|
Get a sample report showing our regional, country and commodities data and analysis.
Request a Trial
Start working with the reports used by the world’s major financial institutions, multinational enterprises & government agencies now. Click on the button below to get started.
August 16, 2019
The economy expanded 4.9% in annual terms in the second quarter, up from the first quarter’s 4.5% year-on-year acceleration and above market expectations of a 4.8% expansion.
August 14, 2019
Consumer prices picked up 0.1% month-on-month in July, slightly higher than June’s stable reading, driven by higher prices for food and non-alcoholic beverages, and transport.
August 9, 2019
Industrial output increased 3.9% year-on-year in June, down slightly from May’s 4.0% increase and missing analysts’ expectations of a 4.1% rise.
August 2, 2019
Exports plunged 7.3% year-on-year in June in USD terms, worse than May’s 2.9% decline.
August 1, 2019
The manufacturing Purchasing Managers’ Index (PMI), produced by IHS Markit and Nikkei, was virtually unchanged at 47.6 in July (June: 47.8).