Conflict in Iraq Results in Risk Aversion, Ringgit Falls

The Malaysian ringgit dropped today, reaching the lowest level in a week, as the escalating conflict in Iraq resulted in the risk aversion sentiment on the Forex market and made investors less willing to buy riskier assets of emerging markets.
Infightings in Iraq continue, and Islamist insurgents control large parts of the country. There were reports that Syria performed air strikes at its neighbor, resulting in deaths of 50 people. Geopolitical tensions made FX traders flee risky currencies, including the Asian ones, and the ringgit was one of the losers.
USD/MYR rose from 3.2135 to 3.2247 as of 10:46 GMT today, reaching the high of 3.2288 intraday.

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