Should We Sell Off US Dollar Now?

cuurency exchange

I am wondering, should we change our USD to MYR at this moment? Or should we keep and wait for the price to go up?

If you think USD will appreciate later, then just keep it. If you think USD will depreciate later, then sell it off now and you can buy it cheap later. I speculate that the dollar will appreciate in value somewhere near the future.

USD

My view: Since it is 3.6 now, it isn’t a good idea to sell it off. For currency, it will never drop to zero because a country can never go bankrupt compared to buying shares. It depends on how much you bought your USD for. So, for now, just wait patiently for inflation to settle.

USD Vs MYR

You are saying, the less advanced is a country’s finance, the less affected they will be to this credit crunch crisis. Malaysia being less advanced than US will be less affected by this crisis either.

Where Can Check Latest Foreign Currency?

Normally I like to check it out at The Star online business section as the rates are issued and updated daily by Malaysia Banking.

Comparing All Types of Currency

As we can see now, MYR, Sterling Pound, Australian and NZD are all down. USD is up because of its unique position. They print a lot because the whole world uses USD as their trading currency.

My view: AUD dollar will be continue to rise. Even they suffer from current economic crisis but remember that their economy is still much stronger than US or Europe. Their currency drops so much last October & reach its historical low. Expect it to be bounced back soon. If you want to buy then better do it slowly & buy during dip.

About David Lee

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7 Responses to Should We Sell Off US Dollar Now?

  1. raid says:

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  3. Jhwong says:

    hi, i m from malaysia, currently working in middle east and being paid in USD. My salary is keep dropping everyday since last year. I m holding a lot of USD right now hoping that it will bounce back to 1USD=RM3.4 level but unfortunately RM is getting stronger. I m really in dilemma because as of today the exchange rate is 1USD=3.06 (remittance buy)
    please advice 🙁

  4. Jhwong,

    Very nice of you earning USD.

    If your home is still Malaysia, holding too much USD is gambling. Ringgit gets strengthen too fast to much, unexpected by many experience people or businessman.

    If you are just a normal guy, i.e. not a financial expert or economy expert, don’t put too much egg in same basket – diversify your asset.

  5. Jhwong says:

    hi Chong,
    dont u think tht the USD-RM had almost reached the bottom already? Even japanese govnmt has intervene their yen-USD due to massive effects on their money repatriation.
    What is Malaysia? further strengthening our currency in such a short period is not a good sign i guess, nothing else but speculation.
    Indeed, it is so scary! most of my frens who are in business keep complaining the market is slow n business getting bad but why, superficially, the economy seems booming?

  6. I don’t know if it reach bottom or not, not an expert to comment.

    However, totally agreed with you that things look to good to be true.

    Our ringgit appreciate too much too fast without real fundamental support (i.e. our national productivity and competitiveness), just like share price, it may collapses.

    However, Great Kuala Lumpur is coming…. 13th GE is coming… our interest rate is so high (just slightly lower than Australia and China)… hot money in; hot money out, there are too many variables.

    If you think USD-RM has reached the bottom, then keep your USD.

    As I said, it is a gambling. Who knows, one day, RM may have a free fall like 1997-1998 from RM2.5 to RM3.8

    May be you should learn more about forex and look for another currency to park portion of your money instead of keep all in USD.

    Diversify unless you are expert in this area. Expert will put all the eggs in one basket and watch it close and tight.

    Good luck.

  7. Jhwong says:

    anyway, many thanks for your advice. you are great

    cheers!

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