Policy normalisation can lend support to ringgit

Bank Islam Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid maintains his view that the central bank will raise the OPR by 25bps in the second half of 2022. This, he says, should lend support to the ringgit.

IN an environment of rising global interest rates, an increase in the overnight policy rate (OPR) could help mitigate the risk of capital outflows and pressure on the local currency.

The ringgit is currently hovering at 4.18 to 4.19 against the US dollar, implying a loss of 0.54% year-to-date (ytd).