The Malaysian ringgit dipped today as falling crude oil prices threatened the nation’s economy. Strength of the US dollar also had a negative impact on the currency’s performance. The ringgit headed to the biggest weekly decline since September 2013.
Futures for crude oil dropped in New York, reaching the lowest level since 2011. This is bad news for ringgit as crude accounts for about 30 percent of Malaysia’s export revenue. The Bank Negara Malaysia left its main interest rate unchanged at yesterday’s policy meeting and said:
The current stance of monetary policy remains accommodative and is assessed to be appropriate given the developments in monetary and financial conditions.
USD/MYR rose from 3.3370 to 3.3463 as of 9:48 GMT today.
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