Kuala lumpur: The ringgit ended higher against the greenback and major currencies on Friday ahead of US Federal Reserve (Fed) Chair Kevin Warsh's anticipated speech at the Jackson Hole Symposium.
According to BERNAMA News Agency, at 6 pm, the ringgit appreciated to 4.0230/0270 against the US dollar, compared to Thursday's close of 4.0305/0350. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that traders were keenly observing Warsh's upcoming speech for insights into the Fed's policy direction as the Federal Open Market Committee (FOMC) meeting approaches on September 15-16.
Dr. Mohd Afzanizam suggested that the Fed chair might adhere to the central bank's mandates of maintaining price stability and maximum employment, leaving future interest rate paths ambiguous. The Jackson Hole symposium, scheduled from August 27-29, is a focal point for investors seeking clues on potential interest rate adjustments by the Fed, with any indication of rate cuts potentially impacting the US dollar and supporting the ringgit.
Meanwhile, Quintex Intel global strategist Stephen Innes remarked on the uncertainty surrounding Warsh's speech among foreign exchange (FX) traders. He speculated that the event might not yield any significant developments. Should his prediction hold true, Innes anticipates a gradual appreciation of the ringgit, bolstered by stable foreign exchange trading conditions and a relatively steady global risk appetite.
Innes highlighted that while the Jackson Hole symposium is known for creating headlines, it typically becomes a significant FX event only when the Fed chair delivers a decisive policy signal amid market uncertainty. He emphasized that current market conditions seem conducive to such an outcome, explaining traders' hesitance to adopt strong directional positions ahead of Warsh's remarks.
Against a basket of major currencies, the ringgit showed gains, strengthening against the Japanese yen to 2.5193/5219 from 2.5274/5304 and against the British pound to 5.4632/4687 from 5.4714/4775, while appreciating against the euro to 4.6828/6874 from 4.6919/6971.
Regionally, the ringgit performed mostly higher, advancing against the Singapore dollar to 3.1652/1686 from 3.1686/1724, strengthening against the Philippine peso to 6.46/6.47 from 6.51/6.53, and rising against the Thai baht to 12.2087/2253 from 12.2534/2715. However, it slipped against the Indonesian rupiah to 227.3/227.7 from 227.1/227.5 previously.