Ringgit Firms Against US Dollar Ahead of Warsh's Jackson Hole Remarks

The ringgit strengthened against major currencies on August 28th ahead of US Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium. At 6pm, the ringgit rose to 4.0230/0270 against the US dollar from yesterday's close of 4.0305/0350.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid stated that traders would closely monitor Warsh's speech for clues to the Fed's policy direction at the upcoming Federal Open Market Committee (FOMC) meeting on September 15-16. He believes that the Fed chairman will stick to the storyline of keeping its official mandates of price stability and maximum employment as top priorities, leaving the future path of interest rates unclear.

However, global strategist Stephen Innes from Quintex Intel expressed uncertainty about what Warsh would say at the symposium. 'My view is that nothing particularly material will come out of tonight's event,' he said, adding that if his prediction proves correct, the ringgit could gradually appreciate supported by benign foreign exchange trading conditions and relatively stable global risk appetite.