Ringgit Rises Ahead of Key Fed Comments

The ringgit opened higher against the US dollar on Friday amid cautious sentiment ahead of signals from the United States Federal Reserve (US Fed) at the annual Jackson Hole Symposium.

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

Afzanizam expects the ringgit to stay in a narrow range today, noting that chances are it will remain scanty on a forward-looking view. He also pointed out that US Fed Chair Kevin Warsh could sound more hawkish at best due to recent consumer price index (CPI) data.

The local currency traded higher against a basket of major currencies, but fell vis-a-vis the British pound. It gained versus the Japanese yen and appreciated vis-a-vis the euro, as well as regional currencies such as the Singapore dollar, Indonesian rupiah, and Thai baht.