Measures taken by Bank Negara Malaysia to curb speculation on the ringgit is scaring off foreign investors, as it is making it difficult for them to hedge their exposure to the local currency, reports Bloomberg.

"While it has successfully reduced ringgit volatility, it is threatening to discourage overseas investors," wrote the publication in an article today.

The publication said that the central bank’s steps to curb trading in offshore non-deliverable forwards (NDF) last year has made it harder for global funds to hedge their exposure.