Ringgit Value is Low Close To Record Low Exchange Rate in 1998

Author: Dian Kencana
February 19, 2024

The ongoing slide in the ringgit was approaching its lowest level ever recorded during the 1998 Asian financial crisis. Photo: Bloomberg

SEAToday.com, Kuala Lumpur-On February 19, the ongoing slide in the ringgit was approaching its lowest level ever recorded during the 1998 Asian financial crisis. The continued weakness in Malaysia's exports also follows the decline, and the strength of the US dollar may push the currency past the record.

At this moment, the Malaysian ringgit is about 2 percent away from reaching 4.885 per US dollar in 1998, when the Asian financial crisis devastated the region's currencies.

Currently, the ringgit has dropped nearly 4 percent in 2024 against the Singapore dollar which is down about 2 percent in 2024.

Several factors influence the decrease in the ringgit including the decline in exports and political instability during the Anwar Ibrahim administration, as well as the strengthening of the US dollar.

In addition, China's struggling economy is harming Southeast Asia nations' economies. Furthermore, investors will be monitoring inflation data this week while awaiting efforts from the Bank of Malaysia to defend interest rates and support its currency. (LALA/ALVIN)