Asian currencies recorded their first weekly loss in almost a month as conflict in Ukraine and a strengthening U.S. economy spurred demand for dollars.
A measure of expected swings in the ringgit headed for a second weekly drop after Malaysia’s central bank damped market speculation that interest rates will rise.
Malaysia’s central bank Governor Zeti Akhtar Aziz said the country’s accelerating inflation doesn’t make her nervous, signaling confidence price increases will remain contained.
Malaysia’s ringgit retreated to a one-week low after the central bank said inflation can be contained, damping speculation of an interest-rate increase.
The ringgit fell the most in three weeks on speculation some investors are buying dollars to take advantage of a favorable exchange rate after the Malaysian currency touched a four-month high yesterday.
Malaysia’s ringgit rose, leading gains in Asia, as U.S. jobs data that trailed estimates pushed back the expected timetable for borrowing-cost increases.
Malaysia’s one-year interest-rate swaps reached the highest level since 2011, signaling the central bank may increase borrowing costs at least twice in 12 months as inflation accelerates.
Malaysia’s 10-year government bonds headed for the biggest weekly drop since January on speculation inflation will accelerate from a 32-month high due to rising living costs.
Malaysia’s ringgit headed for its biggest quarterly gain in more than a year on speculation the nation’s relatively higher yields will draw foreign capital.
The ringgit headed for its biggest weekly decline in two months as Federal Reserve officials raised their 2015 forecast for the U.S. benchmark interest rate, spurring a rally in the dollar.