The Malaysian Ringgit continues its run as Asia’s worst-performing currency of the year, with investors’ fear that Fitch Ratings would downgrade Malaysia and uncertainty for the global economy now resting on Greece, sending the RM to a 10-year low.
Fitch Ratings currently awards Malaysia’s economy a score of A- with a negative outlook, the fourth-worst investment grade. Head of Fitch’s Asia Pacific sovereign ratings in Hong Kong, Andrew Colquhoun, told Bloomberg Business that Fitch will review its assessment before the end of June, with a “more than 50% chance” that Malaysoa will be downgraded.
That gloomy prospect, coupled with general investor apprehension due to tumultuous developments in Greece, has weighed heavily on market sentiment towards the ringgit.
At 9.13am, the ringit fell 0.4% to 3.7830 a US Dollar. It earlier fell to 3.7843, the weakest the currency has been since July 2005. The ringgit has lost 7.5% of its value this year, the worst drop among Asian crrencies.
Know about something happening in KL and Malaysia? Want to share? Send us an email:kl@coconuts.co – don’t just read the news, make it!
