By David Yong
Dec. 1 (Bloomberg) -- Malaysia’s ringgit fell for a second day on speculation a government report this week will show export growth cooled in October, adding to signs the economic slowdown in deepening.
The currency extended a four-month slide after the central bank said last week the economy grew 4.7 percent in the three months ended Sept. 30, the least in three years. Shipments abroad may have increased at the slowest pace since March, according to a Bloomberg News survey.
“Global economic deceleration is going to hit Malaysia and the correction in commodity prices will cap the value of exports,” said Sebastien Barbe, a strategist at Calyon in Hong Kong. “Asia-ex Japan currencies, with the exception of the Hong Kong dollar and Chinese yuan, will have to adjust lower.”
The ringgit fell 0.2 percent to 3.6275 per dollar as of 9:32 a.m. in Kuala Lumpur, according to data compiled by Bloomberg. The currency has declined 10 percent since the end of July. The ringgit will weaken to 3.90 to the dollar by June next year as economic growth slows to zero in 2009, Barbe said.
Malaysian exports rose 5.7 percent in October from a year earlier as prices of key exports such as crude oil and palm oil slumped, according to the Bloomberg survey before the trade ministry report on Dec. 4. They gained 15.1 percent in September.
To contact the reporter on this story: David Yong in Singapore at dyong@bloomberg.net.
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