Dollar, yields slide on soft U.S. inflation, stocks rally

The ringgit slid more than 2 percent in the non-deliverable forward market and the cost to insure against a Malaysian debt default rose. “The surprise win by Mahathir’s coalition party is likely to see an increase in policy uncertainty at least in the short term with market volatility likely to be higher,” said Sian Fenner, lead Asian economist at Oxford Economics. “Malaysian markets are expected to eventually regain some calm as Mahathir’s win may not spell a dramatic policy departure from those under (incumbent prime minister) Najib,” said Kota Hirayama, senior emerging markets economist at SMBC Nikko Securities in Tokyo.

Continue Reading