KUALA LUMPUR, Aug 26 — The ringgit ended higher against the greenback on Wednesday, supported by softer US Treasury yields ahead of the US Federal Reserve’s (Fed) Jackson Hole symposium.
At 6 pm, the ringgit rose to 4.0240/0280 against the US dollar from Monday’s close of 4.0405/0440. The market was closed on Tuesday in conjunction with Prophet Muhammad’s birthday.
Quintex Intel global strategist Stephen Innes said softer US Treasury yields had pushed the ringgit up by nearly half a per cent ahead of a major US risk event.
“The flow data support that view, with Bank Negara figures showing roughly RM3 billion of non-resident Malaysian bond accumulation on Aug 19, including about RM2.1 billion in government bonds and another RM950 million in corporate bonds. So my instinct is that today’s move is a mix of a friendlier global backdrop and Malaysia-specific portfolio inflows,” he told Bernama.
The Jackson Hole symposium, which takes place from Aug 27-29, is closely watched because it could give investors clues on the Fed’s next move on interest rates. If the Fed hints at cutting rates, the US dollar could weaken, giving the ringgit a boost.
According to Innes, US Fed chair Kevin Warsh is an advocate of not providing forward guidance, leaving the market to assess and determine the Fed’s reaction function. “But US inflation data has been softer, US retail sales weaker, hence the market is thinking less hawkish. However, the wild card is Jackson Hole in case Warsh leans hawkish,” he said.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit appreciated against the US dollar today as the prospect of an interest rate hike by the Fed in September looked fairly low. He reckoned that the US Treasury Department’s move to intervene in the bond market to reduce the 30-year US Treasury bonds suggests that a higher interest rate environment is bad for the government’s finances.
“As such, the focus now is on Warsh’s speech on Friday during the Jackson Hole Symposium. It remains to be seen whether the Fed chairman will share any forward-looking insights. He had not been keen to provide any forward guidance in past media appearances, leaving the market more uncertain about the future path of interest rates,” he said. This could be ringgit-positive as the gap between the Fed funds rate and the overnight policy rate will remain stable, he added.
At the close, the ringgit ended higher against a basket of major currencies.
It climbed versus the Japanese yen to 2.5308/5335 from 2.5380/5402 at Monday’s close, increased against the British pound to 5.4827/4882 from 5.5080/5128 and gained vis-à-vis the euro to 4.6940/6987 from 4.7132/7173 previously.
Yesterday was a public holiday in Malaysia.
The local note also traded firmer against regional currencies.
It edged up vis-à-vis the Singapore dollar to 3.1683/1717 from 3.1805/1835 on Monday, strengthened versus the Indonesian rupiah to 227.0/227.3 from 227.9/228.3, appreciated against the Philippine peso to 6.52/6.54 from 6.55/6.56 and gained against the Thai baht to 12.2791/2959 from 12.3589/3742. — Bernama
Date: 26 August, 2026 8:00 pm
Source: Malay Mail
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