Malaysia’s Ringgit Goes Down as Tension Grows

The Malaysian ringgit went lower today as traders fear the Greek referendum may destabilize already “unpleasant” situation in Europe and that fears eat away their willingness to buy riskier currencies of emerging markets.

Government spokesman Angelos Tolkas announced yesterday that Greece will proceed with the referendum on the measures required to get aid from the “troika” (the European Union, the European Central Bank and the International Monetary Fund). French President Nicolas Sarkozy said that the referendum “surprised all of Europe”. Fitch Ratings stated that the vote is a threat to the financial stability of the Eurozone and said:

A rejection of the EU-IMF programme recently negotiated by the Greek government would increase the risk of a forced and disorderly sovereign default.

USD/MYR rose today from 3.1205 to 3.1325 as of 17:50 GMT, jumping to the daily high of 3.1550 earlier.

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