The Ringgit Malaysia went lower against the US dollar again. Do you think it is good news for those blogger who making money online? The Ringgit Malaysia is in between the 3.32 to 3.40 level against the US dollar this few weeks. Based on my personal finance analysis, the Ringgit was higher against the US dollar at 3.44 on the month of September while at 3.48 on the month of August.
At this moment, when the US housing market demand is decreasing, the job market is not that aggressive and consumer-spending power is lower; all these reason will cause the weaker US dollar.
I still remember last year, the value of the US dollar has fallen significantly and it hit the record of 30 years lowest. For me, this weaken US dollar also similar to two sides of coin, means that it also has its advantages and disadvantages. I am going to share with you the benefits only, as many people still remain negative thinking during recession nowadays.
Advantages of a Weaker Dollar
For me, it is not considered as bad news if weaker US dollar as it may increase foreign country demand. Do you know why? In the other words, the US goods will become more competitive. At this point, foreigner can save more money while exchanging it into US dollar. Eventually, they will buy US goods at cheaper cost. Thus, subsequently this wills boost the sales of US corporate, which will create more jobs and US consumer spending power.
Besides that, it can help to increase tourism business. Lets take an example, the normal rate for the hotel room cost is about USD$300, but now it only costs USD$200-250, which will help people to save their money. So, I feel that more tourism is always good for an economy, as more people will prefer to travel to US.
During weaker US dollar, then this is the great time for foreign investor to help the US economy. Over the past few years, majority of US real estate came from foreigners. Those countries like China and Dubai are flush with cash always looking for good investment opportunities.
Do You Think US Dollar Still Can Continue To Fall?
This question is still remaining unknown. Personally will feel that the trend in the currency market can last longer than many people expect. However, with the advantages of a weaker US dollar such as increased exports and foreign investment will help to turn from US bad economy into good economy.