Malaysian ringgit hits new low of 2.6 against Brunei currency

BANDAR SERI BEGAWAN - THE Brunei dollar yesterday broke its 15-year high against the Malaysian ringgit at an estimated RM2.6 to a dollar.

In August this year, the Sultanate’s currency hit a record high against the ringgit when it traded at RM$2.55.

Bank Negara Malaysia figures yesterday showed that as at the close of trading at 5pm, the Malaysian currency was bought at 2.5996 and sold at 2.6021 against the Brunei dollar.

Malaysia’s state news agency Bernama reported that at 5pm, the ringgit was quoted at 3.2900/2925 per US dollar compared with 3.2840/2875 last Friday.

It quoted a dealer who said that the ringgit “touched a fresh three-month low on Monday, falling 2.29 per cent to trade at 3.2935 versus the greenback.

“Like many other emerging Asian currencies, the ringgit has also come under pressure after the (US) Fed announced last week that it would trim its monthly asset purchases, beginning January,” he said.

Bernama reported that the ringgit was also trading lower against other “emerging currencies”.

Moreover, Bernama stated that “the ringgit and other Asian currencies are likely to go through another challenging year in 2014 as the eventual withdrawal of stimulus by the US Federal Reserve would exert an upward pressure on the US dollar.”

The US Federal Reserve has announced that it will reduce its US$85 billion a month in bond purchases by US$10 billion starting in January 2014 upon continued positive economic data, the report read.

Malaysian states are among popular shopping destinations for some Bruneians especially during festive seasons when they cross the border to Miri in Sarawak or Kota Kinabalu in Sabah.

A weakening of the ringgit is sometimes seen to boost travel across the border.

The Brunei Times