Some currencies could be back to their level of 1997/98 according to experts
The strength of the dollar but also the weakening of China’s economy continues to put pressure on ASEAN currencies which are reaching a new low towards the US currency. The downward trend particularly affects Indonesia, Malaysia and Thailand. Since the beginning of the year, Indonesia Rupiah lost 7% of its value, followed by Thailand, down by 6% and Malaysia by 5%. Calculated on a one-year period -from July 23, 2014 to July 22, 2015- the Indonesian, Malaysian and Singapore currencies lost over 10% of their value compared to the US dollar.
By contrary, the Philippines Peso and currencies in Indochina remained relatively steady losing less than 5% of their value against the dollar.
Experts estimate that the Thai currency could further weaken to 35/36 Thai Baht for a dollar until year end- a level not see for a decade- while the Malaysian Ringgit could be close to 4 RM for one dollar, a level not seen since the financial crisis of 1997/1998. Some good news for travellers to the region!