Skip to main content

Ringgit & The Markets

Having highlighted the solid reserves backing the ringgit, it now looks to be building an even stronger base to try for 3.30 before the year is over. The reasoning behind is fundamentals driven and also on the strategy surrounding the renminbi. To placate the Americans, Beijing has widened the band with room for more upside. The ringgit has been only allowed to track the gains of renminbi and not surpass it, or so it seems by Bank Negara. Though most of the Malaysian public are still unconvinced, the ringgit is probably the second strongest currency in terms of under-valuation in Asia after the renminbi. Zeti is only taking an appropriate strategy to keep in step with the renminbi. Why do i say a wave is coming, its because a wave is coming for the renminbi with higher rates in the works and a wider band for China.

The other reason why I say a wave is building is to follow the benchmark yields on the 10-year government bond. Despite the slight weakness when US bond yields went above 5.0% last week, the Malaysian bond yields have actually come down a full percentage point in just the last 8 months, and that's despite the wooblies in China back in March. Hence long term FDIs and even investments in stocks have grew at a solid pace into ringgit denominated assets. Bond yields is now the lowest since 2001 and for very different reasons, I might add. A strong ringgit outlook bodes well for the local stock market, make no bones about it.

Comments

Popular posts from this blog

My Master, A National Treasure

REPOST:  Its been more than two years since I posted on my sifu. This is probably the most significant posting I had done thus far that does not involve business or politics. My circle of close friends and business colleagues have benefited significantly from his treatment.


My Master, Dr. Law Chin Han (from my iPhone)

Where shall I start? OK, just based on real life experiences of those who are close to me. The entire Tong family (Bukit Kiara Properties) absolutely swear that he is the master of masters when it comes to acupuncture (and dentistry as well). To me, you can probably find many great dentists, but to find a real Master in acupuncture, thats a whole different ballgame.


I am not big aficionado of Chinese medicine or acupuncture initially. I guess you have to go through the whole shebang to appreciate the real life changing effects from a master.


My business partner and very close friend went to him after 15 years of persistent gout problem, he will get his heavy attacks at least…

Long Weekends

Passengers - Go Watch It

Passengers. Brilliant story telling. Visionary yet believable. Like Martian, only better. Space travel, science, romantic, desolation, philosophical, mortality n its devastation, spectacular imagery. Being human n humane. 9.7/10