Alfred Lee19 Feb, 2020
The Malaysian Ringgit fell to a new low of RM4.16 to the US Dollar today, the lowest since 12th Dec 2019.
According to a report by news website Bernama, the weakening Dollar was attributed to the economic slowdown taking place across Asia.
Economists project the Ringgit to potentially fall to RM4.2 against the Dollar by the end of the year, averaging at RM4.18.
Bank Negara Malaysia is currently in discussions with the government to propose an economic stimulus package to combat this situation.
“Without an impressive rebound in China’s data and/or global growth, there is no positive risk knock-on effect from US markets. Still, it’s a bit early to start front running that trade versus the strong US dollar, so the ringgit continues to trade defensively,” AxiTrader Ltd chief market strategist Stephen Innes said last week.