Malaysia's currency has been among the hardest hit in the market's "Trump tantrum" after the surprise U.S. election outcome, and the ringgit's pain likely won't end soon, analysts said.
Emerging market assets have tumbled in general in the wake of president-elect Donald Trump's upset win as the dollar surged and U.S. Treasury yields jumped. That hurts emerging-market companies' ability to service dollar-denominated debt and spurred outflows from the segment on the prospect of higher, less-risky returns on Treasurys.
Additionally, markets have been pricing in Trump's aggressive rhetoric on curtailing global trade with the U.S., which was likely to disproportionately hurt trade-dependent emerging economies.
But Malaysia's currency has been especially hard hit, with the dollar climbing as much as 5.8 percent against the ringgit so far in November. On Monday, the dollar was fetching as much as 4.4300 ringgit, the highest in more than a year and flirting with levels last seen during the Asian Financial Crisis in 1997.
That's spurred the central bank to intervene in the market to support the ringgit.
Analysts at Macquarie said that was an indicator of more pain to come. In addition to stepping directly into the foreign-exchange market, the central bank, Bank Negara Malaysia, has also warned banks to restrict trading in offshore non-deliverable forwards (NDFs) on the currency, which have fallen further than the spot rate.
"Bank Negara Malaysia's admission on Friday that it is currently intervening in the foreign-exchange market shows that the selling pressure on emerging market foreign exchange is even worse than the price action suggests," Macquarie said in a note on Monday.
Other analysts pointed to some Malaysia-specific factors.
"The ringgit move has been rather sharp and this is partly due to the fact that it's one of the more globalized financial markets, especially the bond market," Trinh Nguyen, senior economist at asset manager Natixis, told CNBC's "Squawk Box" on Monday.