KUALA LUMPUR, Aug 28 — The ringgit ended higher against the US dollar today on stronger demand for the local note, as investors digested US Federal Reserve (Fed) chairman Jerome Powell’s speech at the Jackson Hole Symposium.
At 6pm, the local currency was quoted at 4.1630/1680 against the greenback from 4.1700/1750 yesterday.
A dealer said the ringgit was traded lower against the greenback earlier today as Powell’s speech sent US Treasury yields to rally.
However, the rally seemed to have hit the pause button for now.
“Powell’s adoption of the average inflation targeting framework may not sit well with investors, thus causing the ringgit to trade higher at the close,” he added.
Another major news today is Japanese Prime Minister Shinzo Abe’s plans to resign, which saw the yen bounced off a two-week low against the US dollar.
The ringgit was also traded lower against the yen at 3.9393/9444 compared with 3.9336/9387 at the close on Thursday.
Commenting on this development and its possible effect on regional currencies, OANDA Asia-Pacific senior market analyst Jeffrey Halley said: “The issue is entirely localised to Japan, the economic policy will not markedly change. Its effects will be minimal to zero on other Asian currencies.”
The ringgit also declined against the Singapore dollar to 3.0581/0629 from 3.0532/0575, it fell against the British pound to 5.5251/5322 from 5.5069/5152, and weakened against the euro to 4.9486/9562 from 4.9302/9378 yesterday. — Bernama
