What is a SWOT Analysis? WikiWealth's free SWOT evaluates the strengths, weaknesses, opportunities, and threats of an investment in the country of Malaysia or a forex (FX) investment in its currency the Dollar (MYR). WikiWealth uses this research to identify the qualitative factors that contribute to economic growth and forex (FX) gains. Strengths and opportunities lead to positive economic growth, which leads to currency strengthening and an improve foreign exchange rate; the opposite is also true.

Purchase Price Parity: In ideal markets, identical goods should have the same price. The MYR's foreign exchange rate should equalize the price of goods across countries. If goods differ significantly, then the lower priced good can be sold in the high priced market for an immediate profit (read more Purchase Price Parity). FX Currency Analyst: Click above to experiment with this analytical model (see tutorial for help).

Interest Rate Parity (International Fisher Affect): Higher interest rates draw in capital from low interest rate countries. The flow of money increases demand for high interest rate country's currency. Higher demand for one's currency increases the value of that currency (read more Interest Rate Parity). If Malaysia were to increase their interest rates, then the Dollar (MYR) would increase in value against other foreign currencies. Currency FX Analyst: Click above to experiment with this analytical model (see tutorial for help).

Inflation Rate Rarity (relative purchase price parity): Inflation decreases the value of money over time; whereas, investors seek to increase the value of their money over time. The currencies of low relative inflation countries will increase in value as demand for their currency increases from investors who want to maintain the value of their money (read more Inflation Rate Parity). Forex (FX) Investors: Click above to experiment with this analytical model (see tutorial for help).