Ringgit falls to 4.418 against US dollar

KUALA LUMPUR: The ringgit depreciated further against the US dollar at the opening session today due to rising uncertainties over the Covid-19 pandemic, dealers said.

At 9am, the local note fell to 4.4180-99 against the US dollar, compared with yesterday's close of 4.4080-92.

A dealer said the sliding ringgit is moving in tandem with regional emerging market currencies as the coronavirus outbreak dampened market sentiment.

However, the ringgit traded mostly higher against other major currencies.

It rose slightly against the Singapore dollar to 3.0394-0440 from 3.0425-0470 at Thursday's close, increased against the euro to 4.7109-71, and rose against the Japanese Yen to 3.9741-9800 from 4.0457-0574 yesterday.

The local note depreciated against the British pound to 5.0940-1010 from 5.0848- 0923.

Adopted from: Bernama, (2020), 'Ringgit falls to 4.418 against US dollar', New Straits Times [Online], 20 March. Available from: https://www.nst.com.my/business/2020/03/576362/ringgit-falls-4418-against-usdollar

Your friend who is running a small medium enterprise (SME) in Malaysia has benefited from the depreciation of ringgit against US dollar by receiving many new foreign orders. Based on this module content outline, suggest and explain THREE (3) most effective ways to protect your friend against credit risk on these foreign sales.