The ringgit has hit a 16-month low!
According to the National Bank’s currency exchange rate table, the ringgit hit 4.245 against the US dollar on Friday, November 26, which is a 1.6 percent depreciation from its closing price of 4.228 on November 25. This is a new 16-month low since July last year.
The ringgit hit a 16-month low, which was mainly caused by the strong US dollar. The Federal Reserve (FED) is turning hawkish, intends to accelerate the reduction of bond purchases, and will raise interest rates in March next year at the earliest. Sources pointed out that the Fed may raise interest rates three times next year, the highest from the current level of close to 0 to 0.75% interest rates, the dollar has also strengthened.
The ringgit has fallen not only against the US dollar, but also against other major currencies. The ringgit has weakened to 3.0949 against the Singapore dollar, RM3.7123 against the Japanese yen and RM5.6484 against the British pound.
The country relies heavily on imported goods to meet domestic demand and the weakening of the ringgit cannot be ruled out as leading to a further rise in domestic prices. At present, auto parts, construction materials, fertilizers, pesticides, animal feed, chicken, eggs, vegetables and seafood are all increasing in price and people are crying out for help.
