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Ringgit Slides Through Mahathir’s Peg as Najib’s Finances Probed

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A decade after Malaysia scrapped the ringgit peg to the dollar, the exchange rate is back where it began just as Prime Minister Najib Razak contests a report alleging the misappropriation of funds.

The currency fell 0.8 percent to 3.8092 versus the greenback in Kuala Lumpur and has dropped 23 percent from a 2011 high as a political debacle surrounding a state investment company exacerbated oil-related losses. Former premier Mahathir Mohamad fixed the currency at 3.8 from 1998 to 2005 to protect businesses amid the Asian financial crisis, blaming speculators for pushing the ringgit to a record low.