AS the ringgit zooms towards the RM4.20 level to the US dollar, the impact of the depreciation of the ringgit can be felt in many ways. Education or travel overseas will generally cost more. In time as contracts for goods and services get renewed, imported goods might cost more.
The ringgit’s weakness is also influencing capital markets. The stock market has seen a steep selldown and bond holders are also trimming their holdings as the ringgit slides against the dollar. The drop in foreign exchange reserves is another indicator which does not breed confidence for the markets.
