Asian Currencies Have Worst Quarter in Seven Years on Fed, China
- Foreign funds pulled a net $17.6 billion from regional stocks
- Losses versus U.S. dollar likely to remain the norm: Westpac
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Asian currencies had their biggest quarterly loss since the global financial crisis, having been battered by China’s surprise devaluation of the yuan and the prospect of a U.S. interest-rate increase.
The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-active currencies outside of Japan, dropped 4 percent in its worst performance since 2008. Malaysia’s ringgit led the rout with a 14 percent slide as oil prices retreated and Prime Minister Najib Razak was caught up in a corruption investigation. The yuan fell the most in 1 1/2 years as an economic downturn worsened in China. Federal Reserve Chair Janet Yellen said Thursday the central bank remains likely to boost interest rates this year.