Malaysia’s ringgit, languishing at a 24-year low against the dollar, is poised to weaken further on concern a national election may reignite political risk and threaten the government’s ability to push through a deficit-busting budget.
The ringgit breached a support level around 4.50 per dollar last month as hawkish moves by the US Federal Reserve fueled a rally in the greenback. The currency now faces fresh headwinds after Prime Minister Ismail Sabri Yaakob dissolved parliament, paving the way for a national vote that must be held in the next two months.
