Market Review and Trends
Here’s why the Ringgit is crashing
By The Fifth Person  •  November 14, 2016
The Malaysian ringgit has been one of the worst performing currencies in Asia since Donald Trump won the recent US election. Having spoken to several economists, currency strategists and traders for their views, here are a couple of possible reasons why.

1. Higher US treasury yields

Suddenly, US government bonds, the safest investments in the world, don’t seem so appealing anymore with someone who’s so far behaved like a lunatic now at the country’s helm. To compensate for this, yields, or the return you get from buying these bonds, have become much higher. So, foreign investors are pulling their money out of high yield bonds such as those issued by Malaysia, and directing the funds into the US. It is this outflow of funds that is causing the ringgit to crash.

2. Uncertainty over trade

Najib Razak recently received some help when he sold distressed 1Mdb assets to the Chinese. ......
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By The Fifth Person
The Fifth Person believes in spreading a message that financial literacy and sound investment knowledge can help people around the world achieve financial independence and lead better lives for themselves and their loved ones.
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