Singapore’s dollar and Malaysia’s ringgit led a decline in Asian currencies after a report showed manufacturing growth in China slowed, dimming the outlook for regional exports.
The ringgit and South Korea’s won retreated from seven-week highs after the Purchasing Managers’ Index fell to 50.4 in October from 51.2 in September, the China Federation of Logistics and Purchasing said in a statement today. Asian stocks headed for the first two-day loss in almost a month as U.S. broker MF Global Holdings Ltd. filed for bankruptcy after investing in sovereign debt of some European nations.
“We expect declines in regional currencies as markets are likely to suffer from outflows of portfolio capital,” said Dariusz Kowalczyk, a currency strategist in Hong Kong at Credit Agricole CIB. “The weak mood reflects a lot of negative factors such as the MF bankruptcy and concerns over the euro-zone funding package.”
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