Malaysian ringgit slumps to weakest level in 17 years

AFP, KUALA LUMPUR: Malaysia’s ringgit currency slid past 4 to the dollar on Wednesday for the first time in 17 years, pounded by concerns over economic growth and political uncertainty stemming from a government financial scandal.
Analysts said China’s surprise devaluation of the yuan also pressured the ringgit, the  worst-performing currency in Asia over the past year.
Malaysia’s economy has been dogged for months by concerns that slumping oil prices will harm growth in the oil-exporting country.
Prime Minister Najib Razak also is struggling to fend off corruption allegations related to his links with debt-ridden state investment firm 1Malaysia Development Berhad (1MDB).
“Malaysia’s vulnerability is heightened by deteriorating terms of trade, high debt, and a fragile fiscal position highly dependent on oil-related revenue,” said Chua Hak Bin, an economist with Bank of America Merrill Lynch.
“Political uncertainty and 1MDB are also hurting consumer and business confidence.”

Malaysian ringgit slumps to weakest level in 17 years

AFP, KUALA LUMPUR: Malaysias ringgit currency slid past 4 to the dollar on Wednesday for the first time in 17 years, pounded by concerns over economic growth and political uncertainty stemming from a government financial scandal. Analysts said Chinas surprise devaluation of the yuan also pressured the ringgit, the worst-performing currency in Asia over the past year. Malaysias economy has been dogged for months by concerns that slumping oil prices will harm growth in the oil-exporting country. Prime Minister Najib Razak also is struggling to fend off corruption allegations related to his links with debt-ridden state investment firm 1Malaysia Development Berhad (1MDB). Malaysias vulnerability is heightened by deteriorating terms of trade, high debt, and a fragile fiscal position highly dependent on oil-related revenue, said Chua Hak Bin, an economist with Bank of America Merrill Lynch. Political uncertainty and 1MDB are also hurting consumer and business confidence.