Malaysia’s economy expanded at the fastest pace in three quarters as exports recovered and domestic demand held up before Prime Minister Najib Razak raised fuel prices in September.
Malaysia’s ringgit headed for a third weekly decline after U.S. data beat estimates, stoking speculation the Federal Reserve will start trimming its stimulus earlier than predicted. Bonds retreated.
Malaysia held its benchmark interest rate for a 15th straight meeting to support economic growth even as inflationary pressures rise after cuts to state fuel and sugar subsidies.
Malaysia’s central bank Governor Zeti Akhtar Aziz said the ringgit could gain over time if the nation’s fundamentals remain strong, and predicted faster economic expansion in 2014.
Goldman Sachs Asset Management LP boosted holdings of Malaysia’s ringgit and the Philippine peso in recent weeks, betting the prospect of interest-rate increases will spur appreciation.
Malaysia sold its first 30-year bonds, its longest maturity, as the Southeast Asian nation seeks to set a new benchmark for the local debt market.
Malaysia’s ringgit rallied, leading gains in Asia, as the dollar weakened on a partial U.S. government shutdown. Sovereign bonds advanced.
The following borrowers are expected to sell Islamic bonds, which use asset returns to pay investors to comply with the religion’s ban on interest.
Zeti Akhtar Aziz, Malaysia’s central bank governor, comments on household debt, banking lending and interest rates.
Malaysia’s three-year sovereign bonds headed for their best week since June as the U.S. government closure spurred speculation the Federal Reserve may delay plans to trim stimulus that has fueled emerging-market inflows.