There have been plenty of reasons for the riskier Asian currencies to drop including concerns about the eurozone and Greece in particular, the rally of the US dollar and the decline of Asian bonds. The Malaysian ringgit has led the drop.
The rally of the dollar and the problems with Greece has made the trading environment highly adverse to risky currencies of emerging markets. The news affected the currencies not just directly but also by hurting the Asian equity market, leading to the decline of the Bloomberg-JPMorgan Asia Dollar Index by 0.2 percent over the week. The Malaysian ringgit was the biggest loser, falling more than 1.5 percent during the trading week.
USD/MYR gained from 3.7015 to close at 3.7600 today.
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