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.

The hidden costs of China’s lifeline in the 1MDB scandal

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.

SCMP This Week In Asia

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes