Malaysia's ringgit down more than 1% to near 10-month low

[SINGAPORE] Malaysia's ringgit extended losses by more than one per cent to hit a near 10-month low as concerns grew over potential capital controls, hurting government bonds.

The ringgit fell 1.1 per cent to 4.3920 per US dollar, its weakest since Jan 20.

Malaysia's government bond prices slid with the 10-year yield hitting 4.227 per cent, the highest since Jan 11.

The central bank has demanded that foreign banks make a written commitment to stop trading offshore non-deliverable forwards in its latest move to protect a weakening currency, banking sources said.

REUTERS