Recent ringgit weakness due to global cues, not local economy - Malaysia central bank
Malaysia's central bank on Friday cited external developments such as the US debt ceiling impasse for the recent weakness in the ringgit, while maintaining its 2023 growth forecast at 4per cent to 5per cent.
The ringgit, which has lost 4.3per cent so far this year, on Friday hit its lowest level against the US dollar since last November before reversing course to end 0.6per cent higher.
The dollar, viewed as a safe-haven bet, has strengthened over 2per cent in the past month, on jitters over US debt ceiling talks and stress in the banking sector.
The dollar eased 0.1per cent on Friday but stayed on track for a third straight weekly gain.
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)
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