What will the situation effect you? Don't have idea? Then lets wait, will petrol or flour can be maintained at the current price? List your self do your basic requirement things/goods will sustained at the price? If not treat like share trading. Purchase at low price.
If you borrow money from foreigner, what currency will you use for the exchange? Yes, bingo USD. So our country James Bond in USD. So we are losing in our exchange.
Bloomberg: Ringgit Heads for Fourth Monthly Drop on Current-Account Concern
The currency touched a three-year low of 3.3377 per dollar on Aug. 28 after a report last week showed the surplus in the broadest measure of trade shrank 70 percent in the second quarter. Fitch Ratings cut its outlook on Malaysia to negative from stable last month, citing public debt levels. The Fed will begin to slow bond purchases at its Sept. 17-18 meeting, according to 65 percent of economists surveyed by Bloomberg.
“The Fed’s taper has shifted the market’s focus to emerging-market asset values and imbalances such as the deterioration in current accounts,” said Nizam Idris, the head of fixed income and currency strategy at Macquarie Bank Ltd. in Singapore. “The market is re-pricing Malaysia’s assets along with all the other emerging-market countries.”
The ringgit dropped 1.8 percent this month to 3.3040 per dollar as of 10:04 a.m. in Kuala Lumpur, according to data compiled by Bloomberg. The currency gained 0.1 percent this week and 0.3 percent today. It has lost almost 8 percent in four months. One-month implied volatility, a measure of expected moves in exchange rates used to price options, rose 34 basis points in August to 9.54 percent.
Malaysia’s current-account surplus narrowed to 2.6 billion ringgit ($787 million) in the second quarter from 8.7 billion ringgit in the previous three months, the closest the country has come to recording a deficit in data compiled by Bloomberg going back to 1999.
Bonds AdvanceThe ringgit faces the most pressure among Asian currencies after India’s rupee and Indonesia’s rupiah because of Malaysia’s worsening current-account position and high foreign ownership of its debt, Santitarn Sathirathai, a Singapore-based economist at Credit Suisse Group AG, wrote in a research notes last week.
Government bonds advanced. The yield on the 3.26 percent notes due March 2018 fell five basis points, or 0.05 percentage point, in August to 3.68 percent, according to data compiled by Bloomberg. The rate climbed three basis points this week and was little changed today.
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