Malaysia’s ringgit led gains in Asian currencies as the dollar extended losses after disappointing US data prompted traders to again pare rate-increase bets.

The ringgit rose 0.9 percent to 3.6737 versus the greenback as of 10.13am in Kuala Lumpur, according to data compiled by Bloomberg . A gauge of the dollar fell 0.2 percent and has lost 1.4 percent in three days.

Investors cut wagers on when they see the Federal Reserve tightening monetary policy, including futures dated from September through January, as the Empire Manufacturing Index showed an unexpected contraction in April. Brent crude prices climbed for a sixth day, which may help allay concern that Malaysia’s government finances will deteriorate given the nation is a net oil exporter.

“Now, maybe the consensus for the Fed rate hike is more toward September,” said Sean Yokota, the Singapore-based head of Asian strategy at Skandinaviska Enskilda Banken AB. “It’s a bit of a dollar squeeze.”

Malaysia sold US$1.5 billion (RMRM5.5 billion) of 10- and 30-year dollar Islamic bonds yesterday in its first global sale since 2011 and got orders for US$9 billion, according to a person familiar with the offering. The debt was issued at yield spreads over US Treasuries that were less than the initial price target.

The South-East Asian nation could be vulnerable to capital outflows should the US raise rates due to the level of foreign ownership of its debt. Global funds held 30 percent of the securities in March compared with 18 percent for Thailand, central bank data show.

Malaysia’s local-currency sovereign bonds were little changed, with the 10-year note yield at 3.89 percent, data compiled by Bloomberg show. The government sold its 10-year sukuk yesterday at 3.04 percent and the 30-year notes at 4.236 percent.

- Bloomberg