{"id":15266,"date":"2022-10-20T19:24:12","date_gmt":"2022-10-20T11:24:12","guid":{"rendered":"https:\/\/newmalaysiatimes.com\/?p=15266"},"modified":"2022-10-20T21:08:05","modified_gmt":"2022-10-20T13:08:05","slug":"ringgit-slips-further-breaching-afc-period-record-low","status":"publish","type":"post","link":"https:\/\/newmalaysiatimes.com\/?p=15266","title":{"rendered":"Ringgit slips further, breaches Asian financial crisis record low"},"content":{"rendered":"\n

KUALA LUMPUR, Oct 20<\/strong> — The ringgit continued to slide against the US dollar, breaching the all-time low that was recorded during the Asian Financial Crisis (AFC) period in 1998.<\/p>\n\n\n\n

This was due to the continuous local and global economic headwinds, analysts said.<\/p>\n\n\n\n

As at 6pm, the ringgit was traded at 4.7270\/7290, which was lower than the 4.7250 level recorded on Jan 7, 1998. At Wednesday\u2019s closing, the local note was traded at 4.7180\/7220.<\/p>\n\n\n\n

SPI Asset Management managing director Stephen Innes said the ringgit extended its downward momentum as the US bond yields soared on the US Federal Reserve\u2019s (Fed) hawkish sentiment.<\/p>\n\n\n\n

He also said despite the headline that Chinese officials are debating cutting inbound COVID-19 quarantine, there has been little respite for the beleaguered ringgit versus the US dollar. <\/p>\n\n\n

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\"ringgit\"<\/figure><\/div>\n\n\n

\u201cMarkets are also cautious about China President Xi Jinping\u2019s common-prosperity drive as the 20th CPC Congress raised a new term “to regulate the mechanism of wealth accumulation”.<\/em><\/p>\n\n\n\n

\u201cBut right now, the hawkish Fed is the biggest game in town for foreign exchange (FX) markets, and provided the Federal Open Market Committee (FOMC) has a change of heart, then things could change for the better for the ringgit,\u201d<\/em> he told Bernama.<\/p>\n\n\n\n

Besides, Innes said, it is not only the ringgit that has weakened. The Japanese yen, one of the strongest currency in the world, breached the 150 line and hit a 32-year low against the US dollar on Thursday. <\/p>\n\n\n\n

He said the weaker yen has been a bit of a bellwether for Asia FX, stemming from a competitive trade advantage in the sense where Japan and China are huge competitors in the export market, and a weaker currency is perceived as more advantageous for stimulating external trade. <\/p>\n\n\n\n

\u201cThe weaker yen is now also creating a massive trade deficit. August’s Japan trade deficit of 2.8 trillion yen was the widest going back to 1993.”<\/em><\/p>\n\n\n\n

\u201cThe continued yen weakness is the biggest headwind to Japan’s trade balance, with trade data showing the yen to be 27 per cent weaker than it was a year earlier.”<\/em><\/p>\n\n\n\n

\u201cThe persistent trade deficit may dampen Japan’s economic recovery as rising import costs could slow domestic consumption. I think we are nearing the end of the road for the yen weakness as the Bank of Japan may need to pull away from its ultra-dovish policy,\u201d<\/em> Innes added. <\/p>\n\n\n\n

Meanwhile, the ringgit was higher against a basket of major currencies. <\/p>\n\n\n\n

It improved versus the Japanese yen to 3.1547\/1565 from 3.1611\/1642 on Wednesday\u2019s closing and edged up against the Singapore dollar to 3.3172\/3188 from 3.3176\/3207 previously.<\/p>\n\n\n\n

The local currency also rose against the euro to 4.6244\/6264 from 4.6326\/6365 on Wednesday and gained vis-a-vis the British pound to 5.2971\/29935 from 5.3233\/3278 at the close yesterday. <\/p>\n\n\n\n

NMT<\/a> as reported by Bernama<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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