Ringgit Retreats as US Fiscal Cliff Spooks Investors

The Malaysian ringgit fell today as fears of the fiscal cliff in the United States and its impact on the US and global economies deterred investors from buying riskier assets.
Forex market participants did not like how the negotiations among US politicians were proceeding and preferred not to risk amid the atmosphere of uncertainty. Domestic fundamentals were not supportive for the ringgit either as exports declined for the third month in October. As a bit of positive news, the government predicted that the Malaysian economy will grow 4.5 percent to 5.5 percent next year.
USD/MYR advanced from 3.0602 to 3.0647 as of 10:35 GMT today and its daily high was at 3.0712.

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