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Ringgit set for longest losing streak in more than a year on oil
[KUALA LUMPUR] Malaysia's ringgit was set for the longest losing streak in almost 14 months as crude's slide below US$45 a barrel renewed concerns about the finances of Asia's only major net oil-exporting nation.
The ringgit weakened 0.5 per cent to 4.0875 per dollar as of 8:34 am in Kuala Lumpur, according to prices from local banks compiled by Bloomberg. It has declined 3.4 per cent in the past seven days, the longest run of losses since the period ended June 2, 2015.
The dollar held its recent gains before the Federal Reserve Open Market Committee starts its two-day policy meeting in Washington Tuesday.
"There's slightly cautious sentiment as we head into the FOMC meeting and on oil-price softness," said Christopher Wong, a foreign-exchange strategist at Malayan Banking Bhd in Singapore.
"We think the Fed is likely to maintain its cautiousness, keeping monetary conditions accommodative, yet reiterate its gradual pace of tightening."
Brent crude fell 5.2 per cent in the three days through Monday, when it reached US$44.55 a barrel, the lowest since May 10. It was at US$44.85 on Tuesday.