Economics
Ringgit Falls to New 1998 Low as Asia Selloff Sends KLCI Lower
- Malaysia benchmark rate seen on hold at 3.25 percent Sept. 11
- Foreign-exchange reserves rose to $94.7 billion in August
This article is for subscribers only.
Malaysia’s ringgit dropped to a new 1998 low and stocks fell as sentiment continues to sour for emerging-market assets amid slowing Chinese growth and prospects for a U.S. interest-rate increase.
The ringgit came under renewed pressure on Monday from a decline in Brent crude and the narrowing in the oil-exporter’s trade surplus. Data on Friday showed a mixed picture of the U.S. jobs market, which is key for determining when the Federal Reserve will tighten policy. While the unemployment rate fell to a seven-year low, non-farm payrolls numbers missed estimates. Higher U.S. borrowing costs may spur more capital outflows from developing nations, just as China’s slowing economy curbs risk appetite.