Analysts say another KL rate cut would push ringgit further down

Kuala Lumpur

THE bad news just doesn't stop for Asia's worst-performing currency.

Already reeling from a renewed slump in oil prices and a political scandal that just won't go away, the Malaysian ringgit is now facing the prospect of another cut in interest rates. It's the region's biggest loser in the past three months and analysts still see scope for it to drop more than 2 per cent by year-end.

The currency's slide highlights that all is not well as the nation's economy heads for its worst performance this decade. Crude oil's plunge to a four-month low this week undermines the finances of net oil exporter Malaysia.

And the appeal of its relatively high bond yields is being tempered by the scandals surrounding a troubled state investment fund. Rabobank Group and UBS Group AG both predict Bank Negar…