The ringgit’s tumble toward a 24-year low is raising expectations that Bank Negara Malaysia will step in to arrest the decline.
Traders are on watch for any signs of support by the central bank after the currency slid more than 5% in the past three months to underperform all its emerging Asian peers. Domestic political instability, a vanishing yield premium over Treasuries and China’s slowing growth have all contributed to the ringgit’s decline.
Another drop of almost 2% will bring the currency to its 2022 low versus the dollar, which was the weakest level since 1998. Analysts say that may be the cue for BNM to make good on a pledge to prop up the ringgit — if it hasn’t already done so.
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