Ringgit Drops Most Since Jan. on Pension Fund Report

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Malaysia’s ringgit dropped the most since January in Friday trading.

The ringgit fell even as the Employees Provident Fund said it is in talks to sell some property in the U.K. Bloomberg News initially incorrectly reported that the fund was in talks to buy more property in the U.K. EPF Chief Executive Officer Shahril Ridza Ridzuan didn’t disclose any details at a press briefing in Kuala Lumpur on Friday. EPF owns 28 assets in the U.K., its biggest offshore real estate investment market, according to its annual report.

The ringgit weakened 1 percent, the biggest decline since Jan. 20, to 3.6670 a dollar in Kuala Lumpur, according to data compiled by Bloomberg. That pared its weekly gain to 0.1 percent. The currency is Asia’s worst performer this year, declining 4.6 percent.

One-month ringgit non-deliverable forwards and 12-month contracts both retreated 1.3 percent Friday to 3.6815 and 3.7755, respectively.

Malaysian government bonds fell, with the yield on the five-year notes climbing one basis point, or 0.01 percentage point, to 3.61 percent, according to data compiled by Bloomberg. It rose four basis points from April 3.

EPF announced plans in July 2012 in conjunction with SP Setia Bhd. and Sime Darby Bhd. to develop 8 billion pounds ($11.7 billion) of property at London’s Battersea Power Station after buying the site from liquidators for 400 million pounds.

(Corrects story published Friday to remove reference to incorrect report and comment in first three paragraphs.)
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