Recent ringgit weakness due to global cues, not local economy: Malaysia central bank
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MALAYSIA’S central bank on Friday (May 26) cited external developments such as the US debt ceiling impasse for the recent weakness in the ringgit, while maintaining its 2023 growth forecast at 4 per cent to 5 per cent.
The ringgit, which has lost 4.3 per cent so far this year, on Friday hit its lowest level against the US dollar since last November before reversing course to end 0.6 per cent higher.
The US dollar, viewed as a safe-haven bet, has strengthened over 2 per cent in the past month, on jitters over US debt ceiling talks and stress in the banking sector.
The US dollar eased 0.1 per cent on Friday but stayed on track for a third straight weekly gain.
The movement of the Malaysian ringgit against major trade partners has been relatively muted, the central bank said.
“The ringgit’s performance should improve as uncertainties from global market developments subside,” Bank Negara Malaysia said. REUTERS
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