Malaysia’s Ringgit in a Tailspin

Currency falls more than 3% Friday to a fresh 17-year low

Aug. 14, 2015 2:27 a.m. ET

Malaysia’s ringgit suffered its largest one-day loss in almost two decades, with investors pulling cash out of stocks and bonds, as the nation’s list of challenges appears to be getting longer.

The ringgit shed more than 3% against the U.S. dollar Friday, leading the losses in global currency markets and falling to a fresh 17-year low.

Malaysia’s benchmark index was down 5.4% for the week, the region’s worst-performing stock market. Yields, which move inversely to prices, on five-year Malaysian government bonds rose 0.20 percentage point this week to their highest level since the global financial crisis.

Earlier this week, a number of currencies in the region tumbled after China’s surprise move to devalue its currency, which many saw as a threat to its export-dependent neighbors. But the ringgit has a set of issues all its own. (WSJ)