Ringgit hits fresh low of RM3.42 against Singdollar on US debt ceiling jitters, weaker China economy

[KUALA LUMPUR] The Malaysian ringgit hit a new record low of RM3.42 against the Singapore dollar on Thursday (May 25) amid growing concerns over the US debt ceiling impasse and the weaker outlook for China’s economy.

The ringgit has tumbled nearly 4 per cent since the start of the year, when it was RM3.29 to the Singdollar on Jan 1. The ringgit also went past the 4.60 level against the US dollar to trade at RM4.63 on Thursday, as the greenback continues to gain due to expectations of another interest rate hike in the US.

Economists expect the downtrend to continue in the short term due to risk aversion and the market’s overall negative sentiment towards the currency.