You are here

Malaysia lets ringgit fall below level that prompted dollar peg

More downside pressures seen with US rate hike, but S&P rating still A-, "stable"

Malaysian ringgit banknotes.

Kuala Lumpur

FOR the past three weeks, the Malaysian authorities have allowed the ringgit to trade at below levels that in 1998 prompted them to impose a dollar peg and capital controls. Economists expect more downside, with the Federal Reserve set to raise US interest rates.