Ringgit strengthens as US yields ease ahead of Jackson Hole meeting
The ringgit strengthened against the US dollar today as prospects of a Fed rate hike in September diminished, says an analyst.
Malaysia's currency, the ringgit, strengthened against the US dollar on Wednesday, buoyed by lower US Treasury yields before the Federal Reserve's Jackson Hole symposium. At 6 pm, the ringgit reached 4.0240/4.0280 against the US dollar, up from Monday's close of 4.0405/4.0440. Quintex Intel global strategist Stephen Innes attributed this move to softer US Treasury yields, adding that non-resident Malaysian bond accumulation contributed to the rise, with RM3 billion in non-resident Malaysian bond accumulation, including RM2.1 billion in government bonds and RM950 million in corporate bonds.
The upcoming Jackson Hole symposium, from Aug 27-29, is closely monitored as it may provide insight into the Fed's next rate move, potentially weakening the US dollar and strengthening the ringgit. However, the Fed's chair, Kevin Warsh, is known for not providing forward guidance, leaving the market to assess the Fed's reaction.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid noted that the ringgit appreciated due to the low likelihood of a September Fed interest rate hike and Warsh's potential hawkish remarks during the Jackson Hole Symposium.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
