The Ringgit Is at Risk From Falling Oil and Slowing Growth
- Lower energy revenue to worsen government’s fiscal deficit
- Central bank warns economy may contract in 2020 due to virus
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Malaysia’s ringgit has navigated the virus outbreak and a slump in crude prices with a measure of resilience. But its fortunes may soon reverse.
A widening fiscal deficit and rising political risks are set to test the currency after it outperformed peers including the Indonesian rupiah and Thai baht in the first quarter. Falling global demand and a possible contraction in Malaysia’s economy will add to the headwinds.