Ringgit falls to 26-year low as growth stalls

 

The value of the ringgit against the greenback has slid 4% so far this year.

PETALING JAYA: The ringgit extended declines to the lowest level since the Asian Financial Crisis as China’s sluggish economy weighs on the country’s outlook.

The local currency fell 0.2% to 4.7965 against the dollar today, its weakest level since an all-time low of 4.8850 in 1998 following the fallout from the regional financial crisis.

The ringgit has slid by over 4% so far in 2024, adding to losses from the previous three years.

Malaysia’s economy grew slower than expected in the three months through December as exports to China fell.

Manufacturing activity remained weak, with January’s Purchasing Managers’ Index coming in at 49.0 — making it 17 straight months below the 50.0 threshold.

The country’s growth trajectory for 2024 is still fraught with risks both externally and at home, while foreign bond outflows amounting to US$382 million (RM1.76 billion) in January, the largest in five months, also reduce support for the local currency. - FMT