Ringgit Rises as Greenback Weakens Ahead of Jackson Hole Speech
The Malaysian ringgit began Wednesday's trading session stronger against the US dollar, supported by a softer greenback and easing long-term US Treasury yields. At 8:04 am, the local currency edged up to 4.0380/0445 against the greenback from Monday's close of 4.0405/0440.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid attributed this movement to the decline in long-term US Treasury bond yields, specifically the 30-year US Treasury securities yield which fell by six basis points to 5.17 per cent.
He also noted that reports suggest the US Treasury Department may tap the Treasury General Account, a cash reserve at the Federal Reserve, to finance its buyback programme.
The market is now focused on the speech of US Fed chair Kevin Warsh at the Jackson Hole Symposium this week, which will be closely scrutinized for clues on the next policy move.