Ringgit weakens further on prospects of further US rate increase

Currency woes: A screen displaying various foreign currency exchange rates including the US dollar against the ringgit is seen at a money changer in Kuala Lumpur. The ringgit hit a low not seen since last September as emerging-market currencies are hammered by a flight of capital fuelled by an expected rise in US interest rates next year. – AFP

PETALING JAYA: The ringgit fell in tandem with other Asian currencies, at one point weakening to 4.480 to the US dollar as investors continue to pull funds out of emerging markets following the US Federal Reserve signal of more rate hikes next year.

The local currency, which closed at 4.478 last Friday against the greenback, fell to a low not seen since last September, and according to analysts, may even drop lower than the Asian financial crisis low of 4.712 seen in January 1998.