By David Yong
Nov. 11 (Bloomberg) -- Malaysia's ringgit fell on speculation a global economic slowdown will damp demand for Asian exports, forcing manufacturers to cut back production.
The currency traded near a two-week low as stocks in Japan, South Korea and Australia tumbled, tracking losses in the U.S. A government report today may show industrial production grew at an annual pace of 0.6 percent in September, the slowest since March 2007, according to a Bloomberg News survey.
``The outlook for growth is extremely negative,'' said James McCormack, head of Asia sovereign ratings at Fitch in Hong Kong. South Korea and Malaysia are ``the most affected in the region'' as growth, capital flows and commodity prices ease, he said in a Bloomberg Television interview today.
The ringgit dropped 0.7 percent to 3.5710 versus the dollar as of 8:40 a.m. in Kuala Lumpur, according to data compiled by Bloomberg. It has weakened 1.6 percent in the past month.
Fitch yesterday cut the outlook on Malaysia's credit rating to ``stable'' from ``positive,'' citing a slowdown in electronics exports and lower commodity prices on its trade balance. The country's rating remained at A-, the fourth-lowest investment grade.
To contact the reporter on this story: David Yong in Singapore at dyong@bloomberg.net.
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