The Malaysian ringgit slumped the most in two weeks on Thursday against the world's reserve currency as the country's central bank is set to implement a policy decision, according to Bloomberg.
Losses as the trade week comes to a close peck away at the currency's gains thus far this month against the greenback, which check in at about 1.1 percent. Malaysia government bonds' yields pushed up. Most economists polled by Bloomberg forecast the Bank Negara Malaysia to push up borrowing costs to 3.25 percent, which would represent an increase of 25 basis points from its present standing.
"I'm a bit surprised by the strength of the ringgit," head of Asia currency and rates strategy Mirza Baig with BNP Paribas SA in Singapore told the news outlet on Thursday. "Our sense is that a rate hike is not necessarily going to slow down household leverage growth and macro-prudential measures would probably be the more appropriate tool."
The ringgit fell about 0.2 percent against the U.S. dollar on Thursday after having touched its top value since late last year during the Wednesday trade session.
Should the central bank increase interest rates, The Star reports that would mark the metric's first lift in three-plus years.
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