The ringgit fell 5.8% against the dollar in October, its biggest monthly drop in about eight years, as traders reassessed the pace of US Federal Reserve interest rate cuts and avoided riskier assets in the run-up to the US election.
Bank Negara Malaysia said it will be ready to smooth any excessive volatility in the ringgit and that markets should look beyond “short-term currency dynamics”.
“BNM remains vigilant and stands ready to provide liquidity as needed,” the central bank said in an emailed statement to Bloomberg News. “Malaysia’s strong fundamentals, positive economic prospects and domestic structural reforms, complemented by ongoing initiatives to encourage flows, will continue to provide enduring support to the ringgit.”
