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No Rest for Malaysia: Investors Seek Fixes Beyond Fitch Approval

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A rally in Malaysia’s currency and stocks after the nation avoided a Fitch Ratings downgrade may be short-lived if it doesn’t clean up an indebted state investment company and reduce threats to its current-account surplus.

The ringgit will probably still weaken to 3.8 against the dollar by year-end, according to Credit Suisse Group AG and United Overseas Bank Ltd. Malaysia would be among the most fragile nation’s in the region should a recovery in the euro area stall because of Greece, Credit Suisse says. The currency fell on Thursday, erasing Wednesday’s advance.