Malaysia’s three-year government bonds headed for the worst week since July as increasing signs of a recovery in the U.S. economy added to speculation the Federal Reserve will pare its stimulus as soon as this month.
New Zealand’s dollar fell against its Australian counterpart from a five-year high after inflation expectations in the smaller nation topped out this quarter, damping the prospects for a rate increase.
India’s largest foreign-exchange intervention since the Lehman Brothers Holdings Inc. bankruptcy has helped smooth swings in the rupee, giving policy makers time to revive the economy, IDBI Bank Ltd. and UBS AG say.
Malaysian Prime Minister Najib Razak’s promise of measures to curb the budget gap and avert a credit-rating downgrade helped send three-year government bond yields to a four-month low. His resolve is about to be tested.