Ringgit slumps to historic low against the Singdollar

SINGAPORE - The ringgit has slumped to a new historic low against the Singdollar, following strong United States economic data which prompted an outflow of money from Malaysia markets.

One Singdollar could buy about RM2.766 on Monday - the weakest the Malaysian currency has been against the Singdollar since at least 1981.

Analysts say the currency's latest bout of weakness is due to a number of factors.

Firstly, robust US economic data has bolstered expectations of an interest rate hike this year. The critical US nonfarm payrolls data, released last Friday, is seen as a key barometer of the world's largest economy.

The stronger US data prompted an outflow of money from Malaysian markets.

Mounting troubles at heavily indebted state investment fund 1Malaysia Development Berhad (1MDB) also contributed to the ringgit's slide.