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Ringgit Slumps Against US$ To Lowest Since January

in Politics/Slider

KUALA LUMPUR: The ringgit fell to a low of 4.3700 on Friday, the weakest since Jan 22, 2016 tracking the weaker regional currencies including Indonesia’s rupiah.

At 11.35am, it was trading at 4.3232 against the greenback. Yesterday, it closed at 4.2802 at 6pm.

The local unit also fell against the pound sterling to 5.4248, the weakest since Sept 16.

Indonesia’s rupiah plunged the most in five years, prompting the nation’s central bank to say it stepped in to stabilize the market, Bloomberg reported.

The rupiah sank 2.7 percent to 13,495 per dollar as of 9:47 a.m. in Jakarta, set for the biggest decline since September 2011, according to prices from local banks compiled by Bloomberg. It dropped as much as 3 percent to reach a five-month low of 13,545.

Meanwhile, Asian shares stumbled on Friday and emerging market currencies skidded as investors feared higher interest rates under incoming President Donald Trump will spark capital outflows from the region.

Reuters reported MSCI’s broadest index of Asia-Pacific shares outside Japan fell 1.4 percent as U.S. bond yields continued to soar on views that Trump’s spending plans will push up inflation, possibly triggering more aggressive rate hikes by the Federal Reserve.

Emerging markets bore the brunt of selling, with Indonesian shares slumping 3 percent while the rupiah currency fell more than 2.5 percent to 4-1/2-month lows.

The Mexico peso, sank to near its record low hit after Trump’s surprise sweep to power.

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