Ringgit Rides Higher Ahead of FOMC Minutes

The Malaysian ringgit continued its upward trend against the US dollar on August 26th, closing higher than yesterday's close. According to Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, market players will closely observe the release of the FOMC meeting minutes later that night for clues on the US Federal Reserve's stance on monetary policy.

The latest FOMC meeting minutes are expected to provide guidance on the Fed's appetite for a rate hike ahead of the Jackson Hole Economic Policy Symposium from August 27-29. The ringgit inched up to 4.0565/4.0610 against the US dollar, while it ended lower against major currencies such as the Japanese yen, British pound, and euro.

The local currency also traded mostly lower against regional currencies, including the Indonesian rupiah, Thai baht, and Singapore dollar. However, it remained flat against the Philippine peso.