Ringgit rose against the weakening pound and it was up 3.14% to 5.5205 at 10.08am from the previous close of 5.6994.
KUALA LUMPUR: Indonesia's rupiah and the Malaysian ringgit led a drop in Asian currencies as the U.K.'s vote to leave the European Union deepened concern about the global economy, driving down crude oil prices and spurring demand for haven assets.
The rupiah sank 0.8 percent to 13,485 per dollar as of 9:12 a.m. in Jakarta, the biggest loss since May 19 and adding to a 0.9 percent decline on Friday, according to prices from local banks.
The ringgit slumped as much as 1.8 percent to 4.1663 per dollar, the lowest since June 2, and recently was at 4.1235. However, the ringgit rose against the weakening pound and it was up 3.14% to 5.5205 from the previous close of 5.6994.
Markets will be driven by “money flight from emerging markets as a result of stronger investor conviction to shift into risk-off mode,” said Angus Salim Amran, Kuala Lumpur-based head of financial markets at RHB Investment Bank Bhd. “Downward pressure on commodity and oil prices - a breach of key $50 oil price resistance now remote -- will lead to continuing weakness in emerging market Asian currencies.”
The next near-term level for the ringgit is 4.15 followed by 4.1718, based on the 200-day moving average, said Khoon Goh, head of Asia research at Australia & New Zealand Banking Group Ltd. in Singapore.
Malaysia's benchmark equities index retreated 0.9 percent while the Jakarta Stock Exchange Composite Index slid 0.7 percent.
The yield on Malaysia's 10-year sovereign debt rose one basis point to 3.92 percent, according to prices from Bursa Malaysia. Five-year credit default swaps rose 15 basis points to 167 on Friday, the biggest increase since March 21, according to CMA prices.
Brent crude slid 0.5 percent to $48.16 a barrel, adding to a 4.9 percent fall on Friday which was the biggest loss in four months. Malaysia loses 450 million ringgit ($109 million) for every $1 drop in oil, Prime Minister Datuk Seri Najib Razak said in April. - Bloomberg
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