Business

Ringgit edges higher as markets await U.S. Powell's Jackson Hole address

Local currency firms slightly against the US dollar and other major currencies ahead of key policy signals from the Federal Reserve

Updated 1 year ago · Published on 22 Aug 2025 9:03AM

Ringgit edges higher as markets await U.S. Powell's Jackson Hole address
The national currency is expected to remain rangebound in the RM4.22 to RM4.23 band until Powell provides fresh monetary policy guidance - August 22, 2025

THE ringgit opened marginally higher against the US dollar on Friday morning, with traders adopting a cautious stance ahead of Federal Reserve Chairman Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium later today.

At 8.00 am, the ringgit was quoted at RM4.2200/2400 against Thursday’s close of RM4.2235/2275.

Bernama cited Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid saying that the ringgit had appreciated by 0.04 per cent against the greenback on Thursday and is expected to remain rangebound in the RM4.22 to RM4.23 band until Powell provides fresh monetary policy guidance.

“The ringgit’s movement is likely to remain limited in anticipation of policy clarity from the Fed,” he said.

Meanwhile, the US Dollar Index strengthened to 98.619, up 0.41 per cent, supported by improved business sentiment. The US Flash Composite Purchasing Managers’ Index rose to 55.4 — the highest level in eight months — driven by strong services activity and a rebound in manufacturing.

However, survey findings highlighted pressure from increased import tariffs, which are weighing on business margins and are expected to be passed on to consumers.

The ringgit also strengthened against several major currencies. It advanced to 5.6616/6884 against the British pound from 5.6899/6953, to 2.8431/8568 versus the Japanese yen from 2.8595/8626, and to 4.8998/9231 against the euro from 4.9226/9263.

Among regional currencies, the local note firmed to 3.2741/2899 against the Singapore dollar, to 12.9139/9822 against the Thai baht, and to 259.0/260.4 against the Indonesian rupiah. It remained unchanged at 7.40/7.44 against the Philippine peso. - August 22, 2025

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