"In the process, it might result in further appreciation of the pound sterling but again, the BoE would be more cautious as they want to ensure the economy would not be so affected as they hope for a soft landing in economic growth,” he said.Īccording to reports, British wages excluding bonuses hit their joint highest growth rate on record, rising by 7.3 per cent in the three months to May 2023 from the same period a year ago. Mohd Afzanizam also said the bank might want to keep raising the interest rate further, given that their labour market has been tight, whereby a high demand for labour could lead to higher wage growth. "The BoE has managed to bring down their inflation rate but still fell short of the 2.0 per cent target,” he pointed out. Meanwhile, Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said UK’s inflation has been sustained at 8.7 per cent in April and May after hitting its peak at more than 11 per cent in October last year. The ringgit was not the only currency that fell against the pound this year, which has also strengthened against other regional currencies and the greenback, making it one of the top-performing currencies in 2023. The last time the ringgit slipped to RM6 against the pound sterling was on May 31, 2016, when the exchange rate stood at 6.0299. However, at the time of writing, the local note improved against the British pound to 5.9828/9913 from 6.0120/0165 yesterday. On Tuesday, the ringgit weakened against the British pound to 6.0136/0187 from 5.9785/9836 on Monday, breaching the RM6 mark to £1. "The wider differentials in interest rate between Malaysia (3.0 per cent) and the UK could also lead to further easing of the ringgit,” he said. Last month, the BoE raised the interest rate by 0.5 percentage points to 5.0 per cent in a move to tame stubborn inflation. The expectation is for the Bank of England (BoE) to hike interest rates beyond six per cent. Nevertheless, Innes said increasing wage pressure in the UK is raising expectations for higher interest rates. Hence, we could see exports going up and demand start accelerating from the UK,” he told Bernama. Malaysia’s exports are at nearly US$2.5 billion to the UK. "In terms of trade, Malaysia currently imports more from the UK than it exports. "The appreciating pound will go further for UK travellers and make Malaysia an attractive travel destination. SPI Asset Management managing director Stephen Innes said a strengthened pound sterling would make Malaysia an attractive and affordable travel destination for UK travellers. dollar became an important international reserve currency after the First World War, and displaced the pound sterling as the world's primary reserve currency by the Bretton Woods Agreement towards the end of the Second World War.KUALA LUMPUR: The current ringgit rate would offer a competitive advantage for Malaysia’s exports to the United Kingdom (UK), besides boosting the local tourism industry, said analysts. Since 1971, all links to gold have been repealed. From 1934, its equivalence to gold was revised to $35 per troy ounce. The Gold Standard Act of 1900 linked the dollar solely to gold. dollar was originally defined under a bimetallic standard of 371.25 grains fine silver or, from 1837, 23.22 grains fine gold, or $20.67 per troy ounce. The monetary policy of the United States is conducted by the Federal Reserve System, which acts as the nation's central bank. banknotes are issued in the form of Federal Reserve Notes, popularly called greenbacks due to their predominantly green color. dollar at par with the Spanish silver dollar, divided it into 100 cents, and authorized the minting of coins denominated in dollars and cents. The Coinage Act of 1792 introduced the U.S. The United States dollar is the official currency of the United States and several other countries.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |