Signs of hope and some positive reviews for the beleaguered ringgit

THE Malaysian currency, ailed by capital flight amid the prospect of rising US interest rates and hit further by sentiment-eroding domestic politics, has begun the new year on the same note of despair which it finished 2016 on.

The ringgit declined 4.3 per cent last year hitting a low of 4.486 against the US dollar, making it Asia's worst-performing currency. In 2015, it fell nearly 19 per cent against the dollar, and has not posted an annual gain against the greenback since 2012.

This year again, a mix of external risks and domestic issues - chiefly a protracted financial scandal that has hit the Malaysian leadership and hurt sentiment towards South-east Asia's third largest economy - has seen the currency tumble to 4.4933 against the dollar in early January, based on Bloomberg data.