MALAYSIA'S currency is on course for its worst month in more than nine years, as investors scale back on risk assets amid concerns over the US election, reported Bloomberg.
The ringgit is down more than 6% against the dollar in October, putting it on pace for its biggest monthly loss since August 2015.
The ringgit traded at 4.39 per dollar today.
The Japanese yen is the only currency across Asia that has performed worse than the ringgit this month, losing around 6.3% of its value against the dollar. China’s offshore yuan has depreciated around 2% against the dollar.
The fate of the ringgit in the near term rests partly on the results of the US elections. Analysts at OCBC and MUFG Bank predict that the currency will strengthen if Democratic presidential candidate Kamala Harris takes the White House since it will reduce the risks of tariffs that could hurt economies across Asia.
MUFG forecasts that the currency will climb to 4.12 per dollar by the year-end, while OCBC sees it gaining to 4.22. - October 30, 2024
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