Ringgit Holds Ground Against Dollar Amid Caution Ahead of Fed Signals

The Malaysian ringgit opened stronger against the US dollar on Friday, but market sentiment remained cautious ahead of signals from the Federal Reserve at its annual Jackson Hole Symposium.

At 8.01 am, the local currency rose to 4.0255/0345 against the greenback from Thursday's close of 4.0305/0350, according to an analyst.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants are likely to remain watchful of the tone adopted by policymakers at the symposium, particularly comments from US Fed officials.

He noted that the focus would be on what US Fed chair Kevin Warsh describes as the prevailing economy and market conditions during the Jackson Hole Symposium, which could sound more hawkish than expected due to recent consumer price index (CPI) data.