KUALA LUMPUR, Aug 7 ― Global investors cut holdings of Malaysian bonds to the lowest level in three years amid a slide in the ringgit and ahead of a possible US interest-rate increase.

Overseas ownership of the nation’s government and corporate debt dropped 2.4 per cent in July to RM206.8 billion, the least since August 2012, the central bank reported today. The currency has weakened 11 per cent this year in Asia’s worst performance.

Sentiment for Malaysian assets has soured due to a slump in oil and a political scandal involving Prime Minister Datuk Seri Najib Razak. Global funds have pulled US$3 billion (RM11.78 billion) from the nation’s equities so far in 2015, the biggest outflow since 2008. Pressure on the ringgit could mount should the Federal Reserve tighten monetary policy, making US Treasuries more attractive. ― Bloomberg