Ringgit Falls Most in Seven Weeks on Surprise China Devaluation

Malaysia’s ringgit fell the most in seven weeks as China’s record weakening in its daily reference rate spurred the biggest decline in the yuan in two decades and triggered losses across Asia.

China took the unprecedented step just days after data showed exports contracted in July for a fifth month this year, underscoring concern that the region’s largest economy is slowing. Malaysia’s currency is Asia’s worst performer in the past 12 months as a slump in Brent crude weighs on the oil exporter’s earnings. A political scandal involving the prime minister and a looming U.S. interest-rate increase have sent the ringgit to a 17-year low, fueling capital outflows.