Malaysian ringgit plunges to lowest level in 26 years

Desk Report

Publisted at 7:25 PM, Tue Feb 20th, 2024

The Malaysian currency Ringgit experienced its lowest level since the Asian financial crisis on Tuesday (February 20) as emerging Asian currencies faced challenges against the US dollar.

The Ringgit fell by nearly 0.3 per cent, reaching almost 4.8 against the greenback in today's trading, marking its weakest performance since January 1998 during the Asian financial meltdown, as reported by CAN.

The currency had already suffered a drop of more than 4 per cent this year, attributed in part to poor export performance and the increasing US interest rates.

Malaysia's central bank governor Datuk Abdul Rasheed Ghaffour said, “The currency's performance had been adversely affected by ‘external factors’ such as US rate hikes, geopolitical concerns, and uncertainties about China's economic prospects.”

He expressed optimism, stating that the expected growth in global trade and Malaysian exports should positively impact the currency this year.

Notably, the Ringgit had previously reached its lowest point since the Asian financial crisis in 2016, when emerging-market currencies faced significant challenges due to capital flight driven by anticipated increases in US interest rates.

Tags: