Ringgit hits 18 year low against US dollar

According to media reports, the Malaysian ringgit has fallen to an 18 year-low against the US dollar, posting the lowest level seen since the Asian financial crisis in 1998. The ringgit fell by around 6% against the US dollar since the new presidential elections on November 8.

The drop in the ringgit was attributed to the fact that the country’s economy, which is Asia’s third largest, was badly affected by investors’ suspension of their investments in emerging markets after the US election.

Malaysia’s central bank reportedly told foreign banks not to make long-distance speculations on the ringgit and warned that it can intervene with the businesses of those who have been trading the ringgit in the non-deliverable forwards market.