Malaysia’s ringgit dropped to the weakest level since May 2010 as concern that China’s economic growth is slowing and prospects of further cuts in U.S. stimulus damped demand for emerging-market assets.
Malaysia’s ringgit rose for a sixth day, the longest run of gains since April, on speculation the Federal Reserve won’t accelerate the reduction of its unprecedented stimulus after employment growth slowed.
China’s planned economic reforms are burnishing the yuan’s credentials as a currency of global trade, pushing its offshore rate to the highest versus its domestic value in 10 months while damping volatility.
Malaysia’s ringgit dropped the most in a month after a jump in U.S. business activity spurred speculation the Federal Reserve will start trimming its stimulus earlier than predicted. Government bonds retreated.