KUALA LUMPUR, Aug 28 — The ringgit opened higher against the US dollar on Friday amid cautious sentiment ahead of signals from the United States Federal Reserve (US Fed) at the annual Jackson Hole Symposium, said an analyst.

At 8.01 am, the local currency rose to 4.0255/0345 against the greenback from Thursday’s close of 4.0305/0350.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market participants are likely to remain watchful of the tone adopted by the policymakers at the symposium, particularly comments from US Fed officials.

“The focus today will be on what US Fed chair Kevin Warsh would describe the prevailing economy and market conditions during the Jackson Hole Symposium.

“Chances are, it will remain scanty on a forward-looking view. In light of the recent consumer price index (CPI), the Fed chair could sound more hawkish at best,” he told Bernama.

Hence, Mohd Afzanizam expects the ringgit to stay in a narrow range today.

At the opening, the ringgit traded higher against a basket of major currencies, but fell vis-a-vis the British pound to 5.4731/4853 from 5.4714/4775 at yesterday’s close.

It gained versus the Japanese yen to 2.5268/5326 from 2.5274/5304 at Thursday’s close, and appreciated vis-a-vis the euro to 4.6909/7014 from 4.6919/6971 previously.

The local note also traded higher against regional currencies.

It edged up against the Singapore dollar to 3.1672/1745 from 3.1686/1724 on Thursday, improved versus the Indonesian rupiah to 226.8/227.4 from 227.1/227.5, and increased against the Thai baht to 12.2411/2764 from 12.2534/2715 previously.

However, the local note was flat against the Philippine peso at 6.51/6.53. — Bernama