Ringgit Rides US Treasury Yield Wave Ahead of Jackson Hole

The Malaysian ringgit strengthened against the US dollar on Wednesday as US Treasury yields eased ahead of the Jackson Hole symposium.

According to global strategist Stephen Innes, softer US Treasury yields pushed the ringgit nearly 0.5% stronger ahead of a major US risk event.

Innes noted that the flow data supported this view, with Bank Negara figures showing roughly RM3 billion of non-resident Malaysian bond accumulation on August 19, including about RM2.1 billion in government bonds and another RM950 million in corporate bonds.

The Jackson Hole symposium, which takes place from August 27-29, is closely watched as it could give investors clues on the Fed's next move on interest rates.