Ringgit hits 17-year low ahead of FX reserves data

comments     Reuters     Published     Updated

The Malaysian ringgit fell to a fresh 17-year low today as investors awaited foreign exchange reserve data for signs on how much ammunition Bank Negara Malaysia has left to defend the currency.

The ringgit fell nearly 1.0 percent to 4.1780 per dollar, its weakest since Aug 31, 1998.

The country pegged the ringgit at 3.8000 to the US currency in September 1998 and maintained it until 2005.

Malaysia will release the reserves data as of mid-August at 6pm local time today. Its international reserves fell below the US$100 billion mark last month.

A protracted political crisis, slumping commodity prices and an investor exodus from emerging market assets have all undermined the currency's appeal, and pressure intensified after China's surprise yuan devaluation last week.

The South-East Asian country is a major supplier of liquefied natural gas and palm oil.

- Reuters



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