1. USDMYR at Asian Financial Crisis level. 2. Ringgit ranked 6th constituent in RMB index. Ringgit lost half its value to USD since 2011. USDMYR now at 4.3115.
IMF announces inclusion of the Chinese Renminbi to the SDR basket. There will be a new forex dynamic as funds re-allocate their foreign reserves.
PBOC’s Yuan devaluation is 2 years late. Despite big hooha, PBOC has maintained a very stable exchange rate with the greenback. Biggest culprit is Japan.
I spoke to Shin Min Daily on 6 July 2015 that SGDMYR 2.92 would be easily achievable. Now that we are here, I think we will see the pair trade above 3.00.
PBOC weakens Yuan by adjusting it’s USD-fix, day 2. Look at 2 charts of USDCNH showing aftermath of this move as well as exchange rates published by BOC.
Hong Kong Monetary Authority continues to intervene in currency markets in April to hold 7.75 line for USDHKD. We explain the move and link to related reports.
USDHKD price action is hugging 7.75 very closely. It is an outer limit of Hong Hong’s currency peg to the USD under the Linked Exchange Rate System. The pair made its deepest penetration to 7.74823 yesterday.