Big Fund Is About To Exit From The Market
If you look into currency exchange between USD/RM you will see Ringgit value is getting stronger compare USD and also Singapore Dollar. So why Ringgit Malaysia is getting stronger? We all know price in food and daily use item is getting higher and higher. If ours currency is strong we sure enjoy it like AUD money, why we all not?
Compare between currency and FBM KLCI the index is moving opposite to the currency so the investment money is moving between currency to share market and now the money is moving into share market that why FBM KLCI is moving higher and higher.
All thing go up will come down and now gold price and exchange from Ringgit into USD is a good opportunity to make profit. Once all the big money in share market removed to buy into gold than FBM KLCI will have a big drop and the currency USD vs RM more up. I personally did not think RM is strong and I think more likely the big money is making a way to put out they money from share market into gold and USD.
2 comments:
Ringgit is up due to three factors:
1) Interest rate is up and will increase more in May (more foreigners willing to buy ringgit and save in bank)
2) GDP revised up to 6%. Economy is good and better than other ASEAN countries. 6% is a very good number. Although the 6% is questionable, foreign investors won't question how you generate your GDP number.
3) NEP (New Economic Plan). This always attracts a lots of interest from foreign investor.
Moreover, CNBC just made a study of the most undervalue currency in the world. #1 - Chinese Yuan, #2 - Ringgit.
When all foreigners come in and buy ringgit, ringgit will shoot up not the other way round.
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