PETALING JAYA: The recent rise of the Malaysian ringgit against the US dollar has been welcomed by most Malaysians.
Architect Datuk Neo Wee Siang, whose eldest son is in his third year of study in San Diego, California, and his youngest son is applying to universities in the United States, said the strengthened ringgit was “a great relief” for him and his wife.
“We can see a great reduction in the amount we transfer to our son each quarter, making it a positive development for my family,” he said in an interview yesterday.
Wee said he is not currently buying or stocking up on US dollars, as he expects the ringgit to rise further with anticipated rate cuts from the US Federal Reserve in the coming months or even a year.
“I am considering holding more US dollars but not at the moment. Probably next year. It is appropriate to hedge against potential ringgit weakening in the future,” he said, adding that this could involve buying US equities, US-denominated investment products or even keeping cash for personal use when visiting his children in the US.
Malaysian health and fitness advocate Kevin Zahri said there has always been a strong correlation between the greenback and the euro, which he focuses on since his youngest daughter, Mikaela, 11, travels mostly to Europe for tennis training and competitions.
“I’m happy that the (ringgit to one euro) rate has dropped compared to earlier in the year, which was RM5.2 in March, versus RM4.6 now,” he said.
Although the rate difference was about 10% “cheaper” now, Kevin said the benefits were somehow diluted by inflation.
“So, we don’t feel that big of an impact in terms of expenses,” he added.
Having regularly invested in US stocks and cryptocurrencies, especially when the US dollar is falling or the ringgit is rising, Kevin said it is at times like this that investors take strategic action based on favourable exchange rates, such as selling stocks for capital and exchange gains.
Accountant Christine Koh said the ringgit’s appreciation against the dollar is advantageous for Malaysian workers without foreign income.
“I believe the ringgit was previously undervalued and is now reflecting its true value.
“Our overseas holidays will be cheaper and hopefully imported goods will reflect lower prices soon.
“However, the stronger ringgit would disadvantage Malaysian exporters and those working overseas,” she said.
Koh, who is planning a trip to Malta next month, said she does not plan to stock up on US dollars but will exchange the amount needed for her planned holidays.
