OMG, great news people! It looks like the Malaysian ringgit has finally broke the curse and our ringgit is slowly but surely climbing up!
This morning on January 5, the ringgit opened higher than the US dollar and it is finally lower than 4! According to Bloomberg, as of press time, the rate is about 3.9938.
Based on a report by MMO, this rate is the highest since August 2016 and Malaysians everywhere have long given up hope that we could ever see the number 3 anywhere on the exchange rate for the USD. The rate is currently fluctuating on Bloomberg’s site but the magical number 3 is still remaining there. Phew!
Apparently, the exchange rate is boosted by the higher oil prices, which is said to be the highest in three years and Malaysia’s currency is benefiting from this increase. Vishnu Varathan, senior economist at Mizuho Bank said, “There are a few factors at work: the latest catalyst must be a confluence of oil prices being very buoyant… paired with a dollar that is unable to hold its footing. Malaysia is one of the few countries here which benefits all around from oil.”
Meanwhile, on Bank Negara Malaysia‘s website, the currency exchange rate shows 3.9945 against the greenback while rates for the Malaysian ringgit across the board all rose higher than yesterday (January 4), with SGD at 3.0107, GBP at 5.4187 and Euro at 4.8232.
A check on an exchange rate website in Malaysia also shows that the rate has dropped, where you only need to fork out RM3.98 for 1 USD, a piece of welcome news to everyone! Time to go travelling overseas, maybe?
The World Bank had said last month that they raised the 2017 growth estimate for Malaysia’s economy to 5.8 per cent, which was strengthened by rising domestic demand and an improved labour market.
Now, let’s keep our fingers crossed that the ringgit continues to strengthen!
Also read: Malaysian Ringgit Hits Its Lowest In History Against Singaporean Dollar