Ringgit Falls on Concern Global Recovery May Be Losing Traction
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The ringgit fell for a second day after an unexpected drop in U.S. home sales underscored concern about the strength of the global recovery, curbing demand for assets of those nations that rely on exports to drive growth.
The currency dropped as the MSCI Asia-Pacific Index of shares slid the most in two weeks. The National Association of Realtors said yesterday sales of previously owned homes in the U.S., Malaysia’s third-biggest export market, dropped 2 percent in May. Economists surveyed by Bloomberg had forecast a 6 percent increase. The ringgit climbed to its strongest level in almost two months this week after China scrapped the yuan’s peg to the dollar.