KUALA LUMPUR: The ringgit continues to strengthen against the US dollar this morning after closing 0.14 per cent higher at yesterday’s close, with all eyes on Bank Negara Malaysia’s Monetary Policy Committee’s decision on the overnight policy rate (OPR) later today.
At 8 am, the ringgit was 4.1865/1985 against the US dollar compared with Wednesday’s close of 4.1890/1925.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the bank foresees the OPR to be maintained at 2.75 per cent in light of the resilient Malaysian economy, as reflected in the third quarter gross domestic product (GDP), which came in at 5.2 per cent.
"As such, the US dollar-ringgit pair is expected to linger around the RM4.19 level today,” he said.
Mohd Azanizam said local market sentiment remains supportive despite the US Dollar Index (DXY) staying at around 100 points amid improving business sentiment in the services sector as well as rising job creation in the private sector.
"The United States economic indicators posted encouraging figures. Nevertheless, issues surrounding the government shutdown and tariffs are weighing on business sentiment as government service delivery are being interrupted along with increasing business costs due to higher import tariffs,” he said.
At the opening, the ringgit traded slightly easier against major currencies except against the Japanese yen.
It was marginally lower against the British pound at 5.4642/4799 from 5.4612/4658 at Wednesday’s close, easier versus the euro at 4.8124/8262 compared with 4.8106/8147, but was up against the yen at 2.7116/7245 from 2.7254/7279 previously.
The local note also traded higher against ASEAN currencies.
It strengthened further against the Singapore dollar to 3.2039/2133 from 3.2055/2085 at yesterday’s close, and rose against the Philippine peso to 7.11/7.14 from 7.12/7.13 previously.
It fell vis-a-vis the Thai baht to 12.8776/9244 from 12.8730/8893 and was flat against the Indonesian rupiah at 250.4/251.2 as compared with 250.5/250.9 yesterday. - Bernama
