ID :
48503
Mon, 03/02/2009 - 17:24
Auther :
Shortlink :
https://oananews.org//node/48503
The shortlink copeid
RINGGIT DEPRECIATED 4.5 PCT AGAINST US DOLLAR 2008
KUALA LUMPUR, March 2 (Bernama) -- The ringgit depreciated by 4.5 percent in
value against the American (US) dollar last year as the US dollar gained
strength from deleveraging activities following the weak US economy and the
failure of several major investment banks there.
Deputy Finance Minister, Ahmad Husni Mohamad Hanadzlah said the
ringgit's depreciation in value against the US dollar was also in line with many
other regional currencies that declined by 1.1 percent to 25.7 percent against
the dollar.
The ringgit also eased against the Singapore dollar by 4.2 percent last
year, he said during the question and answer session at the Lower House of
Parliament sitting here Monday.
He was replying to a question from Wira Ahmad Hamzah, a member of Parliament
(MP) who wanted to know the factors behind the ringgit's depreciation compared
with the US and Singapore dollar when both the countries were experiencing
economic slowdown.
Ahmad Husni explained that the demand for the US and Singapore dollar was
still strong despite the slowdown faced by both the economies.
"This is because investors will usually avoid investing in emerging
economies and will instead invest in developed markets especially during hard
economic times.
"Investors still view assets in the US dollar denomination as safe
investments," he said.
The local unit stood at 3.70 against the US dollar Monday morning.
Ahmad Husni said the country's financial position in the US dollar was very
important as about 86 percent of transactions were in the US dollar while
worldwide, 80 percent of transactions were carried out in the US dollar.
He also reiterated that the government was confident that the country's
foreign exchange value will not come down drastically as its economic
fundamentals were still strong and its foreign direct investments high.
Ahmad Husni said the local currency also depreciated against the yen,
especially in the second half of last year following the increased yen carry
trade.
However, the ringgit went up when compared with the sterling pound and the
Euro especially in the last quarter of 2008 due to the economic recession in the
United Kingdom and the Europe Union following the global financial crisis.
Ringgit also rose in value against the peso, rupiah and won, he added.
-- BERNAMA
value against the American (US) dollar last year as the US dollar gained
strength from deleveraging activities following the weak US economy and the
failure of several major investment banks there.
Deputy Finance Minister, Ahmad Husni Mohamad Hanadzlah said the
ringgit's depreciation in value against the US dollar was also in line with many
other regional currencies that declined by 1.1 percent to 25.7 percent against
the dollar.
The ringgit also eased against the Singapore dollar by 4.2 percent last
year, he said during the question and answer session at the Lower House of
Parliament sitting here Monday.
He was replying to a question from Wira Ahmad Hamzah, a member of Parliament
(MP) who wanted to know the factors behind the ringgit's depreciation compared
with the US and Singapore dollar when both the countries were experiencing
economic slowdown.
Ahmad Husni explained that the demand for the US and Singapore dollar was
still strong despite the slowdown faced by both the economies.
"This is because investors will usually avoid investing in emerging
economies and will instead invest in developed markets especially during hard
economic times.
"Investors still view assets in the US dollar denomination as safe
investments," he said.
The local unit stood at 3.70 against the US dollar Monday morning.
Ahmad Husni said the country's financial position in the US dollar was very
important as about 86 percent of transactions were in the US dollar while
worldwide, 80 percent of transactions were carried out in the US dollar.
He also reiterated that the government was confident that the country's
foreign exchange value will not come down drastically as its economic
fundamentals were still strong and its foreign direct investments high.
Ahmad Husni said the local currency also depreciated against the yen,
especially in the second half of last year following the increased yen carry
trade.
However, the ringgit went up when compared with the sterling pound and the
Euro especially in the last quarter of 2008 due to the economic recession in the
United Kingdom and the Europe Union following the global financial crisis.
Ringgit also rose in value against the peso, rupiah and won, he added.
-- BERNAMA
