Ringgit Rises on Softer US Treasury Yields Ahead of Jackson Hole Symposium

The ringgit strengthened against the US dollar on Wednesday, driven by softer US Treasury yields ahead of the Jackson Hole symposium. The Malaysian currency rose to 4.0240/0280 against the greenback from Monday's close of 4.0405/0440. According to Quintex Intel global strategist Stephen Innes, softer US Treasury yields have pushed the ringgit up by nearly half a percent.

Innes attributed the ringgit's gain to both a friendlier global backdrop and Malaysia-specific portfolio inflows. He noted that Bank Negara figures show 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, scheduled from August 27 to August 29, is closely watched as it may give investors clues on the US Federal Reserve's next move on interest rates. If the US Fed hints at cutting rates, the US dollar could weaken, boosting the ringgit.