Ringgit Expected to See Profit-Taking Following Strong Rally

The Malaysian ringgit has seen a strong rally over the last six trading days, but analysts at Kenanga Research expect profit-taking next week.

The local currency ended Friday's session at 4.0365/0405 against the US dollar, and Kenanga Research notes that its sharp rise and oversold conditions create room for profit-taking if Federal Reserve chair Kevin Warsh delivers less dovish guidance at the upcoming Jackson Hole Symposium on Aug 27-29.

The research firm also points out that investors will be watching for clues on the Fed's policy decision at the FOMC meeting on Sept 15-16, and notes that prior to the symposium, market players will eye the US PCE inflation report scheduled for release on Aug 26.