Currency exchange

Mahathir: Ringgit fair value is same as Asia-crisis peg

Malaysian Prime Minister Mahathir Mohamad said the ringgit’s fair value now is the same as the peg his previous government established in 1998 during the Asian financial crisis.Asked in an interview Friday what he saw as fair value for the currency, Mahathir said “3.8.” That’s more than five percent stronger than its current level against the United States (US) dollar, and a rate it hasn’t traded at since mid-2015, when turmoil in Chinese financial markets hit developing-nation assets.

23 June 2018

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Mahathir's surprise return to test ringgit traders' resolve

The surprise comeback of Malaysian leader Tun Dr Mahathir Mohamad, who once imposed capital controls, is likely to halt a rally in Asia’s best-performing currency amid concerns pro-growth reforms will give way to populist campaign promises.The ringgit may initially slide to the psychological level of 4 to the US dollar, although the size of its decline will depend on the level of clarity about the new policies, according to Bank of Singapore.

11 May 2018

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