Malaysia's ringgit fell before the release of June export data, which may show shipments contracted for a fifth month this year as a slump in Brent crude cuts revenue for the net oil exporter.

The ringgit continues to notch up new 16-year lows on a daily basis as the effect of falling commodities, the prospect of a US interest-rate increase and a political scandal linked to state investment company 1Malaysia Development Bhd hurts sentiment.

Federal Reserve Bank of Atlanta chief Dennis Lockhart said in a Wall Street Journal report that he would only endorse putting off a September rate hike should there be a significant deterioration in economic data, boosting demand for the dollar.

"Rising expectations the Fed will raise rates soon are dragging down the ringgit and other regional currencies," said Ahmad Zubaidi Samse, a foreign-exchange trader at Bank Muamalat Malaysia Bhd in Kuala Lumpur. "The ringgit has fallen more because of domestic political issues, and a weaker exports number won't help."

Malaysia's currency declined 0.6 percent to 3.8775 against the greenback as of 9.39am in Kuala Lumpur, prices from local banks compiled by Bloomberg show. That's the lowest since since September 1998 when it reached 3.9340. The ringgit has lost 9.9 percent this year in Asia's worst performance.

Exports dropped 2.2 percent from a year earlier, compared with a 6.7 percent decrease in May, according to the median forecast of 18 economists in a Bloomberg survey before figures due at noon local time.

Ten-year government bonds rose, with the yield falling two basis points to 4.05 percent, according to Bursa Malaysia prices. The five-year yield was little changed at 3.64 percent.

- Bloomberg