The ringgit traded at 4.4798 in Tuesday afternoon trade in Asia, according to Bloomberg. It had fallen to 4.4805 on Monday, its weakest point since January 1998.
It has lost six per cent since Trump’s shock victory in the US presidential election on November 8.
“The ringgit, like other emerging market currencies, has been badly hit by the anti-globalisation fears brought on by Donald Trump’s election and the US Fed’s accelerated plans for interest rate hikes,” said Stephen Innes, a Singapore-based senior trader at foreign exchange firm Oanda.
Its currency has taken a further beating owing to the graft scandal involving its sovereign wealth arm 1MDB. The company is facing money laundering investigations in multiple jurisdictions including Singapore, Switzerland and the US. Najib, who set up the fund in 2009, denies any wrongdoing and insists the government is cooperating with international probes.
“The ringgit’s problems also lie with the fact that the 1MDB scandal has not left the headlines despite a lot of rhetoric otherwise and this is agitating global investors,” Innes said.