Malaysian ringgit hits fresh 17-year low

Manan Vatsyayana | AFP | Getty Images

Malaysia's ringgit hit a new pre-peg 17-year low on Friday after a fall in oil prices increased concerns over the country's exports.

The ringgit lost as much as 2.6 percent to 4.1180 per dollar, its weakest since September 1, 1998. Malaysia pegged the ringgit at 3.8000 in September 1998 and maintained it until 2005.

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Kuala Lumpur stocks dropped 1.5 percent, while five-year government bond yield rose to 3.982 percent, its highest since November 2008.

Oil prices fell with crude futures hitting 6-1/2 lows, exacerbating worries about Malaysia's exports. The country supplies liquefied natural gas and palm oil.