It fell 0.31% against the US dollar to end at 4.0078, which was its weakest closing against the greenback since March 29. This was despite global crude oil prices stabilising above US$45 per barrel, which should alleviate concerns over the fiscal position of Malaysia as an oil and gas-driven economy.
KUALA LUMPUR: Malaysia's ringgit fell by the most this month, as oil prices retreated and the prospect of the U.K. leaving the European Union fueled demand for haven assets.
Brent crude extended declines to a third session on Monday after recording its steepest fall in a month on Friday, weighing on the outlook for Malaysia, which derives about a fifth of government revenue from energy-related sources. A gauge of the dollar held a gain from last week as polls ahead of the June 23 referendum showed those backing a British exit from the EU are almost evenly split with those who favor staying.
“In the last New York session, the dollar rose against most emerging markets on fear of the Brexit risk,” said Masashi Murata, a vice president at Brown Brothers Harriman & Co. in Tokyo. “The oil price dropped on that as well, which leads to a weaker ringgit.”
The ringgit depreciated as much as 0.9 percent, the biggest drop since May 30, before trading 0.8 percent weaker at 4.1040 per dollar as of 9:30 a.m. in Kuala Lumpur, according to prices from local banks compiled by Bloomberg.
A report due Wednesday is forecast to show Malaysian consumer prices rose 2 percent in May from a year earlier, the slowest pace since April last year, according to the median estimate of economists in a Bloomberg survey. - bLOOMBERG
Limited time offer:
Just RM5 per month.
