Malaysian central bank defends ailing ringgit amid political storm

Reuters | .

Malaysia's central bank intervened for a third successive trading day on Tuesday to support the ringgit currency, traders said, as corruption allegations swirled round Prime Minister Najib Razak, raising doubts over his grip on power.

Thanks to Bank Negara's damage limitation, the ringgit has lost only 0.8 per cent since the political storm broke on Friday, but it has weakened past an old currency peg of 3.80 per dollar, fixed in September 1998 during the Asian financial crisis and scrapped in 2005.

The ringgit closed at 3.8060 on Tuesday, helped off a low of 3.8100 by the heaviest day for intervention so far as foreign investors sold Malaysian assets.

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