Ringgit and Malaysian shares head for September losses
The ringgit retreated more than 1% during September, while Malaysian equities were heading for their sharpest monthly fall since January 2025.
Malaysia joined most emerging Asian markets in heading towards September losses as elevated US bond yields, dollar strength and expectations of further Federal Reserve rate increases weighed on regional assets. Malaysian stocks nevertheless rose 0.6% on Sept 30.
US benchmark 10-year Treasury yields remained close to 5.23%, a high last seen in 2007. Oil was also heading towards a monthly increase, with little indication that the seven-month Iran war was nearing an end.
South Korea and Taiwan bucked the region's monthly equity declines, gaining 0.6% and 3.9%, respectively. Indonesian shares dropped more than 6% during September, putting them on course for their weakest monthly showing since June.
Currency losses extended across the region. September declines for the Indian rupee, Indonesian rupiah and Philippine peso stood at 0.8%, 0.9% and 0.4%, respectively. Both the Thai baht and Malaysian ringgit lost more than 1%, while only the South Korean won gained.
ACCM research director Glenn Yin attributed the won's relative resilience to semiconductor exports and money flowing into equities, which helped counter pressure from the dollar.
The rupiah recovered 0.5% to 17,870 per dollar on Sept 30 after crossing 18,000 the previous day. Bank Indonesia said it would use spot-market intervention as necessary to limit volatility, with its approach adjusted to market conditions. The currency was still heading towards its poorest monthly performance since May.
