Ringgit slides with Malaysian stocks it lower down to 0.7 per cent

The ringgit weakened 0.7 per cent to 4.1845 per US dollar as of 9.56

am in Kuala Lumpur, after last week posting its biggest rally since October as the outlook for the oil-exporting nation's finances improved amid a recovery in Brent crude. Oil fell for a second day on Tuesday as Malaysian markets reopened after a holiday on Monday.

The ringgit also weakened to 2.9393 to the Singapore dollar as of 10.41am, 0.7 per cent lower than its close on Monday.

"It appears that the dust is being kicked up on 1MDB all over again," said Mr Vishnu Varathan, a Singapore-based economist at Mizuho Bank Ltd. "Downside pressures for the ringgit could re-emerge."

The ringgit climbed 3.3 per cent in January, more than any other in emerging markets, on speculation 2015's 19 per cent decline was overdone.

Malaysia's benchmark stock index fell 0.5 per cent after climbing 2.6 per cent in the five days through Jan 29. Government bonds due in 2020 rose, with the yield falling two basis points to 3.36 per cent, Bursa Malaysia prices show.