Ringgit firms against US dollar as markets await Fed chair Warsh’s Jackson Hole remarks

KUALA LUMPUR, Aug 28 — The Malaysian ringgit gained strength against the US dollar and other major currencies ahead of Federal Reserve Chair Kevin Warsh's remarks at the Jackson Hole Symposium. At 6pm, the ringgit reached 4.0230/0270 against the US dollar, up from yesterday's close of 4.0305/0350. Analyst Dr Mohd Afzanizam Abdul Rashid of Bank Muamalat Malaysia Bhd stated that traders would be watching Warsh's speech for hints on the Fed's future interest rate policy at the upcoming Federal Open Market Committee (FOMC) meeting on Sept 15-16.

The Fed chairman is expected to emphasize its top priorities of price stability and maximum employment, leaving the path of interest rates uncertain. The Jackson Hole symposium, held Aug 27-29, is closely monitored by investors for clues on the Fed's next move on interest rates. A signal of rate cuts could weaken the US dollar and support the ringgit.

Quintex Intel global strategist Stephen Innes noted that FX traders are uncertain about what Warsh will say at the symposium. However, if the event does not deliver any material news, he expects the ringgit to gradually appreciate due to benign forex trading conditions and stable global risk appetite. Against a basket of major currencies, the ringgit gained against the Japanese yen, British pound, and euro, and strengthened against the Singapore dollar, Philippine peso, and Thai baht. However, it weakened against the Indonesian rupiah.