Ringgit leads Asia FX losses on tumbling oil

The Malaysian ringgit led losses among emerging Asian currencies on Tuesday dampened by slumping global oil prices, while China's weak trade data pointed to a continuing slowdown. China's yuan touched its weakest since August 26 as the central bank set its daily guidance rate weaker. The offshore renminbi fell to a two-month low and the spread between onshore and offshore rates widened.
The South Korean won fell to its weakest in more than two months on foreigners' continuous stock selling. Asian stocks hit three-week lows on tumbling energy company shares and growing caution ahead of the Federal Reserve's policy meeting next week when the US central bank is expected to raise interest rates.
Global oil prices lost ground to 7-year troughs as the Organisation of the Petroleum Exporting Countries (Opec) continued to pump near record levels, exacerbating a supply glut. China's trade performance remained weak in November with exports falling more than expected, data showed earlier on Tuesday, indicating the economy could use more stimulus.
"We don't need to be so gung ho about risk at this point with oil and commodity prices slumping, a US rate hike next week," said Christopher Wong, senior FX analyst for Maybank in Singapore. "Risk appetite may take a back seat for now," said Wong, adding Indonesia's rupiah, the won and Singapore dollar were expected to weaken against the US dollar as well as the Japanese yen.
The ringgit slid 1.3 percent to 4.2700 per dollar, its weakest since November 30. Offshore funds, such as leveraged accounts, sold the Malaysian currency as most government bond prices eased. The ringgit is the worst-performing Asian currency this year partially due to concerns that falling crude prices may hurt Malaysia's exports. The country is a major supplier of palm oil and natural liquefied gas.
The won lost as much as 0.9 percent to 1,178.7 per dollar, its weakest since October 2. Foreign investors were set to become net sellers in Seoul's main stock market for a fifth straight session. They sold a combined net 1.2 trillion won ($1.02 billion) worth of equities during the period, Korea Exchange data showed. The South Korean currency has the scope to weaken to 1,185-1,188 in stages as it cracked chart support at 1,175.1, the 61.8 percent Fibonacci retracement of its appreciation from September to October, analysts said.