Ringgit in Longest Losing Streak Since 1971 on Capital Outflows
- Currency falls for a 12th week as Brent adds to declines
- Bank Negara Malaysia seen maintaining key rate at 3.25% Friday
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Malaysia’s ringgit rounded out its worst run of weekly losses in more than four decades as a drop in oil exacerbated the currency’s decline amid capital outflows from emerging markets.
The currency fell for a 12th week, the longest stretch in Bloomberg data going back to 1971, as slowing Chinese growth and prospects of a U.S. interest-rate increase sapped demand for developing-nation assets. Bank Negara Malaysia will keep benchmark borrowing costs on hold at a meeting Friday, according to a Bloomberg survey, after data showed factory output beat estimates. The ringgit is Asia’s worst-performing currency this year, weighed down by a political scandal involving Prime Minister Najib Razak.