Currency intervention _ econometer malaysia currency history exchange rate

The EUR has lost around 23% since it all time high in April 2008 when it traded close to 1.6000. 1 malaysian ringgit is equal to how many indian rupee The EUR failed to rally even in the wake of the EUR 750 billion European Union / International Monetary Fund support package, a fact that has highlighted the weight of negative sentiment towards the currency. Myr currency converter The latest blow to the currency came from the announcement of unilateral measures from Germany to ban naked short selling on sovereign debt and some financial stocks, actions that only highlighted the lack of policy co-ordination within the eurozone.

The rationale for further EUR/USD weakness is clear and justified partly by growth divergence within the eurozone countries, with Germany on the one extreme and weaker Southern European countries

on the other. Usd convert to malaysian currency Moreover, relatively weaker overall growth in the eurozone compared to the US economy, a delay in interest rate hikes by the European Central Bank (ECB) and ongoing concerns about implementation and execution of deficit cutting plans, will also weigh on the EUR.

The EU/IMF support package and in particular ECB interventions in the Eurozone bond market have managed to alleviate some of the strain on European bond markets, but without similar intervention in the FX markets the EUR has become the release valve for Europe’s fiscal and debt problems. Malaysian ringgit to japanese yen exchange rate history As a result the EUR’s fall has accelerated over recent weeks, only showing any sign of stability as fears of currency intervention increased.

The quickening pace of EUR depreciation has led to growing speculation of FX intervention by the ECB and other central banks to support the currency. Usd to myr currency converter I believe intervention is highly unlikely and see little reason for panic about the drop in the EUR. Malaysian currency converter to us dollars Once markets realise that there is indeed little risk of intervention the EUR will resume its downtrend.

One of the main reasons behind this view is that the EUR is not particularly “cheap” at current levels. Exchange rate singapore to malaysian ringgit today In fact, “fair value” estimates based on the OECD measure of purchasing power parity (PPP) suggest that EUR/USD is around 5.6% overvalued at current levels, based on an implied PPP rate of around 1.17. Pound sterling to ringgit malaysia converter Therefore, the drop in the EUR over recent months has only brought it back close to PPP fair value estimates.

Moreover despite the fact that there has been a large nominal depreciation of the EUR its trade weighted exchange rate has declined by much less, around 8.5% since the beginning of the year and around 11.3% since its high in October 2009. Rmb currency converter to usd Although the trade weighted EUR is around its lowest level since October 2008, taking a longer term view shows that it is slightly above its average over the past 20-years.

The information published within this blog has been prepared on the basis of publicly available information and other sources believed to be reliable. Rate of malaysian currency Whilst all reasonable care is taken to ensure that the facts stated are accurate, the author is not in any way responsible for the accuracy of its contents. Currency converter malaysian ringgit to british pound The comments are intended to provide clients with information and should not be construed as an offer or solicitation to buy or sell securities, currencies or any other financial product. Myr currency to usd The author makes no recommendations as to the merits of any financial product referred to in this blog and the information contained does not take into account your personal objectives, financial situation and needs. Malaysia currency exchange rate history Therefore you should consider whether these products are appropriate in view of your objectives, financial situation and needs as well as considering the risks associated in dealing with those products. Sgd currency converter The views expressed here are purely personal and do not represent the views or opinions of Crédit Agricole CIB.