Ringgit, emerging market currencies fall against US dollar

The ringgit and other emerging-market currencies continued their decline against the US dollar, weighed down by mounting investor concerns over a possible interest rate hike by the United States Federal Reserve System (Fed), dealers said.

At 12 pm, the ringgit was trading at 4.3850/3920 versus the greenback, compared with 4.3570/3670 at 9.06 am today.

Later today, Fed Chair Janet Yellen will be delivering a speech on the US economic outlook.

Sunway University Business School Professor of Economics Dr Yeah Kim Leng said the improvement in the US economy including the recent job data and consumer spending sentiment had led to higher demand for the US dollar, dragging the ringgit and other emerging-market currencies further down.

"Emerging-market currencies like those of Brazil, South Korea, Indonesia, China and Malaysia are likely to feel a negative impact due to the reversal in capital flows," Yeah told Bernama today.

The ringgit fell to its lowest since Jan 21 when it touched 4.3780/3870.

-- BERNAMA