Ringgit Seeks Clarity from Warsh's Jackson Hole Remarks

The Malaysian ringgit rose against major currencies ahead of US Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium in Wyoming. At 6pm on August 28, the ringgit reached 4.0230/0270 against the US dollar from Thursday's close of 4.0305/0350.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said traders will closely monitor Warsh's speech for clues to the US Fed's policy direction at the upcoming Federal Open Market Committee meeting on September 15 and September 16.

Warsh is expected to stick to the storyline of keeping its official mandates of price stability and maximum employment as top priorities, leaving the future path of interest rates unclear. The Jackson Hole symposium runs from August 27 to August 29 and is closely watched by investors for clues on the US Fed's next move on interest rates.

Any signal of a shift toward rate cuts could weigh on the US dollar and support the ringgit, according to Mohd Afzanizam Abdul Rashid. Meanwhile, Quintex Intel global strategist Stephen Innes said foreign exchange traders remained uncertain about what Warsh would say at the symposium.