Stronger ringgit due to weaker dollar and yen
KUALA LUMPUR: It is the weakening of the US dollar and the Japanese yen that is giving strength to the ringgit as well as other currencies in the region, Second Finance Minister Tan Sri Nor Mohamed Yakcop said yesterday.
That is why the government contends that there is no problem over a strengthening ringgit, he explained to reporters after he spoke at the conclusion of the Young Leaders Forum of the World Islamic Economic Forum here. “We also must remember that the flow is two-way, as people both buy and sell the ringgit, so this is reflected in the movement of the unit,” he said. “We also need to see the ringgit in the context of other currencies, which are also strengthening against the US dollar.
“So, the performance of the ringgit is in line with the performance of other currencies following the weakening of the US dollar and the yen.” Nor Mohamed said that in terms of the cross-rate between the ringgit and other regional currencies, the local currency has not strengthened, in fact “against some currencies we are slightly weakened.” “So, it is only the dollar and yen that have weakened, so it is not really a case of the ringgit that has become too strong. “At this point of time, we do not have any problem (with the ringgit’s valuation).”
The ringgit scaled to as high as RM3.39 against the US dollar last Monday due to aggressive buying of the local unit after Asian currencies rose in reaction to China’s decision to widen the yuan’s trading band. Last Tuesday, it continued to strengthen to a new nine-year high of RM3.38 per dollar.
— Bernama
That is why the government contends that there is no problem over a strengthening ringgit, he explained to reporters after he spoke at the conclusion of the Young Leaders Forum of the World Islamic Economic Forum here. “We also must remember that the flow is two-way, as people both buy and sell the ringgit, so this is reflected in the movement of the unit,” he said. “We also need to see the ringgit in the context of other currencies, which are also strengthening against the US dollar.
“So, the performance of the ringgit is in line with the performance of other currencies following the weakening of the US dollar and the yen.” Nor Mohamed said that in terms of the cross-rate between the ringgit and other regional currencies, the local currency has not strengthened, in fact “against some currencies we are slightly weakened.” “So, it is only the dollar and yen that have weakened, so it is not really a case of the ringgit that has become too strong. “At this point of time, we do not have any problem (with the ringgit’s valuation).”
The ringgit scaled to as high as RM3.39 against the US dollar last Monday due to aggressive buying of the local unit after Asian currencies rose in reaction to China’s decision to widen the yuan’s trading band. Last Tuesday, it continued to strengthen to a new nine-year high of RM3.38 per dollar.
— Bernama
No comments:
Post a Comment