Recent ringgit weakness due to global cues, not local economy – Malaysia central bank

(Reuters) -Malaysia’s central bank on Friday cited external developments such as the U.S. debt ceiling impasse for the recent weakness in the ringgit, while maintaining its 2023 growth forecast at 4% to 5%.

The ringgit, which has lost 4.3% so far this year, on Friday hit its lowest level against the U.S. dollar since last November before reversing course to end 0.6% higher.  

The dollar, viewed as a safe-haven bet, has strengthened over 2% in the past month, on jitters over U.S. debt ceiling talks and stress in the banking sector.

The dollar eased 0.1% on Friday but stayed on track for a third straight weekly gain. [FRX/]

The movement of the Malaysian ringgit against major trade partners has been relatively muted, the central bank said.

    “The ringgit’s performance should improve as uncertainties from global market developments subside,” Bank Negara Malaysia said.

(Reporting by Roushni Nair and Upasana Singh in BengaluruEditing by Vinay Dwivedi and Sriraj Kalluvila)