KUALA LUMPUR (BLOOMBERG) - Malaysia's ringgit fell to a three-week low as the UK's vote to leave the European Union deepened concern about the global economy, driving down crude oil prices and spurring demand for haven assets.
The ringgit slumped as much as 1.8 per cent to 4.1663 per US dollar, the lowest since June 2, and traded at 4.1215 as of 8:43 am in Kuala Lumpur, according to prices from local banks compiled by Bloomberg. The currency has weakened 5.4 per cent this quarter.
The ringgit also weakened further against the Singapre dollar. It was trading at 3.0352 per Singdollar as of 9:38 am, down 0.54 per cent from its Friday close.
Trading in the ringgit will be driven by "money flight from emerging markets as a result of stronger investor conviction to shift into risk-off mode," said Angus Salim Amran, Kuala Lumpur- based head of financial markets at RHB Investment Bank Bhd. "Downward pressure on commodity and oil prices - a breach of key US$50 oil price resistance now remote - will lead to continuing weakness in emerging market Asian currencies.
Brent crude slid 1.1 per cent to US$47.90 a barrel, adding to a 4.9 per cent fall on Friday which was the biggest loss in four months.