Ringgit leads Asia currency rally as Fed rate odds dip further

Malaysia's ringgit led an advance in Asian currencies as odds of a US interest-rate increase this year diminished further, giving a reprieve to emerging-market assets.

 

Asian currencies are rallying in October as futures show just a 33 per cent chance of a rate hike by the Federal Reserve, compared with 61 per cent at the start of the month. Exchange rates in the region have come under pressure this year as prospects for US monetary tightening fueled concern that demand for local assets would recede. The ringgit has seen the biggest selloff as a slump in Brent crude cuts earnings for the oil exporter and a political scandal involving the prime minister erodes investor confidence.