Singapore Surprise Policy Easing Spurs Asia-Wide Currency Rout

Singapore’s dollar slumped the most since August, dragging down other Asia-Pacific currencies, as surprise easing by the central bank fueled speculation other policy makers in the region will follow suit.

New Zealand’s dollar, Malaysia’s ringgit and Indonesia’s rupiah also weakened after the Monetary Authority of Singapore said it would seek a policy of zero appreciation against an undisclosed basket of currencies, returning to a neutral stance it adopted in the global financial crisis in 2008. Singapore’s central bank cited “a less favorable external environment” in its policy statement, adding to concern the outlook for global growth is worsening.