Malaysian Ringgit at 21-Month Low

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.
Malaysia’s 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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