The Malaysian ringgit declined to the lowest level in more than 21 months today as the concerns about the global economy growth rose and the stock markets tumbled world-wide.
This Asian currency fell yesterday and continued to weaken today after the U.S. retail sales were reported with a biggest drop in the last 3 years yesterday. U.S. and European stock markets posted large losses last trading session and the Asian stock markets dropped at a nearly record pace today.
The ongoing recession in U.S. produces a damaging effect on the Asian export industry, providing another problem for the risk-averting investors. The runaway from the emerging markets and their currencies becomes a very popular trend now.
Malaysias GDP growth is expected to slow down in 2009 to 3.4 percent from the current estimated 5.3 percent growth for this year, with a large part of the economy working on exports, which provides the main foreign currency inflow.
USD/MYR currency pair closed at 3.5175 rate yesterday and grew up to 3.5285 as of 7:33 GMT today — the lowest rate since January 2007.
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