Ringgit Strengthens Ahead of Jackson Hole Speech by US Federal Reserve Chair

The Malaysian ringgit has strengthened against several major currencies ahead of US Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Symposium. The symposium is closely watched by investors for clues on the Fed's next move on interest rates.

Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, believes that the Fed chairman will stick to the official mandates of price stability and maximum employment, leaving the future path of interest rates unclear. This lack of clear signal has led to uncertainty among foreign exchange traders.

Stephen Innes, global strategist at Quintex Intel, also expects nothing material to come out of tonight's event. If that proves correct, he predicts the ringgit will gradually appreciate due to benign foreign exchange trading conditions and relatively stable global risk appetite.