Malaysia’s ringgit fell after a report of a split among European leaders on a plan to resolve the region’s debt crisis dimmed the outlook for the global economy. Government bonds rose by the most in almost two weeks.
Luxembourg Prime Minister Jean-Claude Juncker, who chairs the group of euro-area finance ministers, said an impromptu meeting of European leaders in Frankfurt last night failed to resolve differences.
The Federal Reserve said yesterday U.S. companies reported more doubt about the strength of the economic recovery. The MSCI Asia-Pacific Index of regional stocks dropped 0.9 percent. “There’s no progress in Europe’s rescue fund talks,” said Akira Banno, a treasury adviser at Bank of Tokyo-Mitsubishi UFJ in Kuala Lumpur.
“Export growth may slow because of the deteriorating outlook for the global economy.” The ringgit weakened 0.5 percent to 3.1225 per dollar as of 9:32 a.m. in Kuala Lumpur, according to data compiled by Bloomberg.
It strengthened 0.9 percent yesterday, the biggest advance since Oct. 10. The currency has climbed 2.3 percent so far this month after slumping 7 percent in September, the worst monthly loss since June 1998. Malaysia’s exports grew at the fastest pace in four months in August, rising 10.9 percent from a year earlier after gaining 7.1 percent in July, the trade ministry reported Oct. 7.
“Overall economic activity continued to expand in September, although many districts described the pace of growth as ‘modest’ or ‘slight,’” the Fed said in its Beige Book survey released yesterday in Washington. “Contacts generally noted weaker or less certain outlooks for business conditions.”
The yield on the 3.434 percent notes due August 2014 dropped six basis points, or 0.06 percentage point, to 3.13 percent, according to Bursa Malaysia. -- Bloomberg
Luxembourg Prime Minister Jean-Claude Juncker, who chairs the group of euro-area finance ministers, said an impromptu meeting of European leaders in Frankfurt last night failed to resolve differences.
The Federal Reserve said yesterday U.S. companies reported more doubt about the strength of the economic recovery. The MSCI Asia-Pacific Index of regional stocks dropped 0.9 percent. “There’s no progress in Europe’s rescue fund talks,” said Akira Banno, a treasury adviser at Bank of Tokyo-Mitsubishi UFJ in Kuala Lumpur.
“Export growth may slow because of the deteriorating outlook for the global economy.” The ringgit weakened 0.5 percent to 3.1225 per dollar as of 9:32 a.m. in Kuala Lumpur, according to data compiled by Bloomberg.
It strengthened 0.9 percent yesterday, the biggest advance since Oct. 10. The currency has climbed 2.3 percent so far this month after slumping 7 percent in September, the worst monthly loss since June 1998. Malaysia’s exports grew at the fastest pace in four months in August, rising 10.9 percent from a year earlier after gaining 7.1 percent in July, the trade ministry reported Oct. 7.
“Overall economic activity continued to expand in September, although many districts described the pace of growth as ‘modest’ or ‘slight,’” the Fed said in its Beige Book survey released yesterday in Washington. “Contacts generally noted weaker or less certain outlooks for business conditions.”
The yield on the 3.434 percent notes due August 2014 dropped six basis points, or 0.06 percentage point, to 3.13 percent, according to Bursa Malaysia. -- Bloomberg
