Ringgit headed for 10th weekly loss before Bersih protests

KUALA LUMPUR] The ringgit was headed for a 10th weekly decline, its longest losing streak since 2013, as thousands of protesters prepared for a weekend march to demand Prime Minister Najib Razak's resignation.

 

The ringgit has dropped 25 per cent in the past year, the biggest decline in Asia, as a scandal involving political donations to Mr Najib damps sentiment and a 53 per cent drop in Brent crude prices hurts the finances of the oil-exporting nation. The yield on 10-year government bonds rose to a seven- year high as a plunge in Chinese equities this week deepened concerns about growth in Malaysia's biggest overseas market.

"Overall, sentiment is still very weak," said Choong Yin Pheng, senior manager for bonds and economic research at Hong Leong Bank Bhd. in Kuala Lumpur. "There are still a lot of concerns on the growth outlook as well as some of the domestic issues." The ringgit depreciated 1.1 per cent in the past five days to 4.2273 a dollar as of 10:18 am in Kuala Lumpur, according to prices from local banks compiled by Bloomberg. The currency rose 0.2 per cent Friday and Hong Leong Bank's Choong said gains were supported by a 10 per cent overnight jump in Brent.