Ringgit drops to lowest level since Asian financial crisis

(Sept 6): The Malaysian ringgit tumbled to a 24-year low as a stronger US dollar and domestic political risks damped sentiment.

The ringgit fell as much as 0.2% to 4.5015 per US dollar as it breached the 4.5002 mark reached in January 2017. The Malaysian currency is now at its weakest level since January 1998, during the Asian financial crisis.

A resurgent greenback is exerting pressure on regional currencies as traders speculate that the Federal Reserve will press ahead with large rate hikes to tame inflation. For Malaysia, politics is adding another layer of uncertainty with some party leaders pushing for an early election to capitalise on better-than-expected economic growth.