The Federal Reserve had been talking about raising interest rate for months. We'll only know whether this ongoing topic will becomes a reality in coming December.
The US dollar has been the best performing currency for the year. Trading at 1USD= RM4.294 today, year to date Ringgit is almost 21 percent weaken against USD.
If the rate hike is confirmed in December, we are not surprised to see US Dollar surged above RM4.50 in short term. However, US dollar had rallied for a year. Short term correction might sent USD/RM below RM4, says around RM3.80.
Since HK dollar is pegged to US dollar, we will convert more HK dollar for our Hong Kong portfolio if Ringgit is strengthened.
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