Economics
Malaysia’s Ringgit Touches Weakest Level Since May 2010 on Fed
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Malaysia’s ringgit touched the weakest level since May 2010 and government bonds declined after the Federal Reserve pressed ahead with stimulus cuts, damping demand for emerging-market assets.
The MSCI Asia Pacific Index of stocks dropped after the Fed said yesterday it will trim monthly bond purchases to $65 billion, sticking to a plan for a gradual withdrawal from stimulus that has fueled fund flows to developing nations. Global investors held 29 percent of Malaysian sovereign debt at the end of November, compared with 18 percent in Thailand, official data show. The central bank kept its benchmark interest rate at 3 percent yesterday to shield growth.