Ringgit is strong, will it get strongerrr...?
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Ringgit is strong, will it get strongerrr...? #personalfinance #malaysia #investments #investing #stocks #fyp #et #assets #equitiestracker #dividends
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ringit is expected to strengthen against the USD in 2026. What's really happening? We can say that either the ringit is strengthening or the US dollar actually has devalued. The latter is more true than the ring strengthening. One of the reasons why is that postcoid the federal reserve in order to reduce inflation rate they actually increase interest rates dramatically going from 0 to 5 1/2% at its peak. Now it's now come down slightly to 3.75. However, the Federal Reserve chair Jerome Powell is expected to end his two term by May in 2026 and it is the president's derogative to nominate a new chair for the Federal Reserve of which he has which is Kevin Walsh. So what this means is that President Trump has always been pushing very hard for lower interest rates. Uh why does he want to do that? He wants to improve liquidity and more importantly reduce the borrowing costs on the US government and everywhere else as well. So this is very much a debt field or monetary policy which will almost certainly guarantee very short-term results. However, for Malaysia because we are export oriented, this might be a bit trickier for exporters because their cost is in ringit but they sell in USD. That would mean lower revenues, higher costs, lower margins. Um on the other hand importers will be happier especially if a lot of their cost is based in USD and they generate revenue in ringit their margins will be fatter. But in 2026 it looks like the ringit will continue to strengthen against the USD probably hitting the 3.8 mark I think quite comfortably maybe even 3.5. Yeah that's my guess.
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Ringgit is strong, will it get strongerrr...? #personalfinance #malaysia #investments #investing #stocks #fyp #et #assets #equitiestracker #dividends
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