Monday, February 23, 2015
Ringgit to USD Chart ...... pray it does not breakout @ MY 3.70 !
MYR closed at 3.64 against USD today. It's getting very close to 2009 level.
We may think that USD is universally getting stronger against a lot of currencies but look this. I do not want to show SGD here because we always have something to say that they are a well managed country. Let's compare to Thailand.....Geez......holidaying in Thailand seems to get much more expensive.
I don't think Ringgit depreciation is driven by poor sentiments or uncertainty caused by 1MDB alone. First almost default on RM 2 billion loand and now rumors are swirling of RM 3 billion cash injection needed.
Something is wrong!
But at the same time, things seem to be quite calm in the bond markets.
Our 10 year yield is still quite stable and I do hope things will be under control. The movement so far has been in locked steps with US 10 year bond yield though there were some spikes that quickly brought back under control.
The divergent is building up. It's really time to be vigilant.
Posted by Turtleinvestor at 10:34 PM