Ringgit falls to new low since 1998 after US jobs data, oil price drop

The ringgit fell to a new 1998 low as oil prices extended their decline and after a report showed the US jobless rate was at its lowest in seven years, adding weight to the Federal Reserve's plan to raise interest rates.

 

Brent crude extended last week's drop and has halved in price during the past 12 months, cutting government revenue for oil-exporting Malaysia. While the US unemployment rate touched 5.1 per cent in August, the lowest level since 2008, the rise in the non-farm payrolls numbers was less than forecast, according to official data on Sept 4. Higher US borrowing costs risk increasing capital outflows from emerging markets, just as slowing Chinese economic growth is curbing risk appetite.