The ringgit extended declines to its lowest level since the Asian financial crisis, prompting Malaysia’s central bank to say it doesn’t reflect the improving outlook for the economy.
The local currency briefly slipped past 4.8 against the US dollar on Tuesday, its weakest level since reaching an all-time low of 4.8850 in 1998. The ringgit has slid by over 4% so far in 2024 as China’s sluggish economy hurts exports from Malaysia, adding to the currency’s losses from the previous three years.
“BNM is of the view that the current level of the ringgit does not reflect the positive prospects of the Malaysian economy going forward,” Bank Negara Malaysia Governor Abdul Rasheed Ghaffour said in a statement Tuesday. “The recent performance of the ringgit, similar to other regional currencies, has been influenced by external factors.”
