Ringgit hits fresh low as concerns mount over political uncertainty: analysts

THE Malaysian ringgit reached an all-time low against the Singapore dollar on Friday (Oct 14) and a near record low against the US dollar, amid growing concerns over the US Federal Reserve’s numerous interest rate hikes and ongoing political uncertainty in Malaysia ahead of a general election that is expected to take place in a few weeks.

The ringgit fell to nearly RM4.70 against the greenback on Friday, and RM3.30 against the Singdollar. The ringgit has fallen by over 12 per cent year-to-date against the US dollar, having started the year at the RM4.18 mark. Against the Singdollar, the ringgit has dipped by around 6.8 per cent, from RM3.09 on Jan 1.

Oh Ei Sun, a senior fellow at the Singapore Institute of International Affairs, said the Fed’s continuous interest rate hikes to tighten its money supply in the international open market have put pressure on the exchange rate against other minor currencies such as the ringgit.