THE Malaysian ringgit extended declines to the lowest level since the Asian Financial Crisis as China’s sluggish economy weigh on the country’s outlook.
The local currency fell 0.2 per cent to 4.7965 against the dollar, 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 per cent 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 in January, the largest in five months, also reduce support for the local currency. BLOOMBERG
