KUALA LUMPUR: The ringgit ended slightly lower against the US dollar at yesterday’s close ahead of Bank Negara’s overnight policy rate (OPR) decision today, says an analyst.
At 6pm, the local note inched lower to 4.2360/2435 versus the greenback compared to Tuesday’s close of 4.2285/2360.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the Monetary Policy Committee would deliberate on the OPR decision, with economists expressing varied opinions on the likely outcome.
“Some (economists) have pencilled in for a 25 basis points cut while others are of the view that the benchmark interest will stay unchanged at 3%,” he told Bernama.
Mohd Afzanizam said geopolitical risks are once again on traders’ radar, with the latest military encounter between India and Pakistan having led to anxiety over how it might impact the global economy.
“Additionally, the ringgit continues to depreciate against the US dollar for two consecutive days after the US dollar-ringgit reaches RM4.20 on Monday.
“This is in tandem with other currencies’ performance, with the US Dollar Index up by 0.24% to 99.478 points.”
