PETALING JAYA: As the ringgit continues to strengthen against major world currencies, Malaysians are seizing the opportunity to diversify their currency portfolios by taking advantage of the favourable exchange rate.
The ringgit’s surge, positioning it as the top-performing currency in Asia, has led many to rethink their financial strategies while some are travelling more overseas.
Others are seizing the opportunity to invest in more stable foreign currencies.
The ringgit closed at RM4.14 against the greenback yesterday: its strongest in 30 months. It was above RM4.70 to the greenback several months ago.
Among the factors supporting the currency is the large interest rate cut of 50 basis points by the US Federal Reserve (Fed), higher inflow of foreign investments, as well as confidence in the country’s economic and political stability. With the Fed set to bring its interest rate much lower through 2025, any US dollar rebound could be shortlived.
This has contributed to a year-to-date appreciation of over 11% against the greenback.
“It’s a bit of a virtuous cycle – Fed cuts strengthen the ringgit, commodities get a boost from China’s stimulus efforts, and traders are jumping on the ringgit bandwagon, expecting more inflows,” said SPI Asset Management managing director Stephen Innes.
vantages of timing his currency exchange.
Similarly, Janice Chan, 25, said the stronger ringgit has benefited her during her trip to Taiwan with her brother last week.
“We managed to exchange around 10% more Taiwanese dollars compared with my friends who travelled there in June.
“Now that the ringgit is getting stronger, I joked with my brother that we should have travelled a bit later to get even more Taiwanese dollars,” she said, adding that the stronger currency had made her holiday more affordable.
“Every bit helps, and having more money meant we had more to spend! I definitely could buy a few extra bubble teas to enjoy,” Chan added.
Meanwhile, Samantha Liow, who was also in Taiwan earlier this month, said she noticed a better exchange rate compared with last year when she was there.
“Honestly, I didn’t feel a significant difference when spending there, likely because it was offset by inflation and the touristy places I visited this time,” Liow said, adding that she hopes to see the ringgit appreciate more.
“I usually keep some US dollars in cash for travel. I’m considering buying more, but not now, as I believe the ringgit will strengthen further with more rate cuts by the US Fed next year.
“I’ll be waiting for my year-end bonus to invest with the ringgit,” said the 30-year-old.
Source: strong-ringgit-spurs-buying-mode
