Ringgit Dips Ahead of Jackson Hole Symposium

The Malaysian ringgit closed lower against the US dollar on Thursday ahead of the Jackson Hole symposium, where Federal Reserve chair Kevin Warsh is set to deliver a speech.

Analyst Afzanizam Abdul Rashid from Bank Muamalat Malaysia Bhd noted that traders will closely scrutinize Warsh's speech for clues on the Fed's next move on interest rates and its potential impact on the US government's debt, which currently stands at $40.1 trillion.

Afzanizam said rising Treasury yields would result in higher debt servicing costs, making it 'interesting to see how Warsh shares his take on the intricacies between monetary and fiscal policies and their impact on the US government.'

He added that if the Fed hints at cutting rates, the US dollar could weaken, giving the ringgit a boost. The Jackson Hole symposium takes place from August 27-29.