Ringgit To Remain Weak As Ringgit Forex Reserves Drop

ringgit forex reserves drop

The Malaysian currency is expected to remain weak due to potential outflow of foreign capital due to the volatility caused by the Eurozone crisis, said RHB Research Institute today.

The research house said that the ringgit depreciated by 4.6 per cent against the US dollar in May as compared with a gain of 1.1 per cent in April in line with a drop in foreign exchange reserves as investors turned risk averse and reduced their exposure to Asian assets.

Malaysiaโ€™s foreign exchange reserves declined by US$0.1 billion or RM0.3 billion in the second half of May to US$136 billion (RM417 billion), after growing by US$0.2 billion or RM0.6 billion in the first half of May.

Read moreRinggit To Remain Weak As Ringgit Forex Reserves Drop