Ringgit Sees Profit-Taking After Six-Day Rally

The Malaysian ringgit has experienced a strong rally over the past six trading days, ending at 4.0365/0405 to the US dollar on Friday.

Kenanga Research expects profit-taking next week due to oversold conditions and a potential less dovish guidance from US Federal Reserve chair Kevin Warsh at the Jackson Hole Symposium on August 27-29.

Investors will be monitoring clues on the Fed's policy decision at the upcoming Federal Open Market Committee meeting on September 15-16. On a Friday-to-Friday basis, the ringgit rose against the greenback to 4.0365/0405 from 4.0840/0885 a week earlier.

The local currency traded mostly higher against a basket of major currencies during the week, appreciating versus the British pound and Japanese yen but slipping against the euro.