Brent crude extended declines to a third session on Monday after recording its steepest fall in a month on Friday, weighing on the outlook for Malaysia, which derives about a fifth of government revenue from energy-related sources. A gauge of the dollar held a gain from last week as polls ahead of the June 23 referendum showed those backing a British exit from the EU are almost evenly split with those who favor staying.
â€œIn the last New York session, the dollar rose against most emerging markets on fear of the Brexit risk,â€ said Masashi Murata, a vice president at Brown Brothers Harriman & Co. in Tokyo. â€œThe oil price dropped on that as well, which leads to a weaker ringgit.â€
The ringgit depreciated as much as 0.9 percent, the biggest drop since May 30, before trading 0.8 percent weaker at 4.1040 per dollar as of 9:30 a.m. in Kuala Lumpur, according to prices from local banks compiled by Bloomberg.
A report due Wednesday is forecast to show Malaysian consumer prices rose 2 percent in May from a year earlier, the slowest pace since April last year, according to the median estimate of economists in a Bloomberg survey. – BLOOMBERG