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The currency of Malaysia, the ringgit, slid to the weakest level in more than five years, as falling crude prices slackened the net-oil-exporting nation’s growth outlook.
The currency of Malaysia, the ringgit, slid to the weakest level in more than five years, as falling crude prices slackened the net-oil-exporting nation’s growth outlook.
As quoted in the market news:
Brent crude extended its drop from a four-year low today and has slumped 17 percent in the past month as the Organization of Petroleum Exporting Countries decided not to cut output to shore up prices. Malaysia’s overseas shipments contracted in October for the first time in 16 months, official data showed today. The ringgit led declines in Asian currencies this week, losing 2.5 percent, and recorded its biggest weekly loss since June 2013.
The ringgit weakened 0.7 percent to 3.4713 per dollar in Kuala Lumpur, data compiled by Bloomberg show. It reached 3.4757 earlier, the lowest level since October 2009.
Mitul Kotecha, the Singapore-based head of Asia currency strategy at Barclays plc (LSE:BARC), stated:
Malaysia is the only Asian country that really doesn’t benefit from lower oil prices. Being a net exporter of oil, Malaysia suffers more than others.