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Asian Currencies Record Biggest Monthly Decline in Three Years

  • Malaysia's ringgit dropped more than twice as much as peers
  • Selloff in regional currencies spurred by yuan devaluation
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Asia’s currencies posted their biggest monthly loss in three years, led by Malaysia’s ringgit, after a yuan devaluation heightened the risk of a currency war in the region as the U.S. prepares to raise interest rates.

The Bloomberg-JPMorgan Asia Dollar Index, which tracks the region’s 10 most-active currencies excluding the yen, retreated 2.6 percent in August, the biggest monthly decline since May 2012. Global funds sold about $10 billion more equities than they bought in South Korea, India, Taiwan, Thailand, Indonesia and the Philippines, the latest exchange data show.