Ringgit Posts Worst Annual Drop Since 1997 Crisis as Fed Tapers
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Malaysia’s ringgit completed its worst annual loss since the 1997 Asian financial crisis on concern capital inflows will slow as the Federal Reserve trims its record monetary stimulus.
The Fed announced on Dec. 18 that it will start cutting monthly bond purchases by $10 billion to $75 billion in January and pledged to keep interest rates near zero until inflation and unemployment improve. Malaysia’s government bonds returned 0.9 percent in 2013, the smallest increase in four years, according to an index compiled by HSBC Holdings Plc.