Ringgit Opened Higher, Market Awaits BNM's OPR Results Today!


The ringgit moved strongly against the US dollar since it opened early this morning as local market participants await the announcement of the overnight policy rate (OPR) by Bank Negara Malaysia (BNM) later today.

At 10.30 this morning, the ringgit moved positively to the level of 4.7400 compared to when it opened at 4.7450 this morning.

The chief economist of Bank Muamalat Malaysia Bhd, Mohd Afzanizam Abdul Rashid said that the US Dollar Index (DXY) continued to rise to 105,546 points (0.1%).

At a time of lack of economic reports, the market will continue to pay full attention to the comments of US Fed officials in the determination of interest rate cuts throughout the year.

The Fed has been consistent in their remarks that inflation remains their primary concern.

Boston Fed President Susan Collins said interest rates may need to be kept high for longer to curb demand and lower commodity prices.

Accordingly, the ringgit is likely to weaken with technical readings showing that the local currency is near an overbought position.

Today's focus is on the results of the BNM Monetary Policy Committee meeting. Economists expect the OPR to remain unchanged at 3.00 percent.

Meanwhile, the ringgit traded mostly lower against a group of major currencies, except against the Japanese yen.

It rose against the Japanese yen to 3.0484/0502 from Wednesday's close of 3.0495/0530, weakened against the British pound to 5.9254/9285 from 5.9209/9272 yesterday and fell against the euro to 5.0970/0997 from a previous 5.0954/1007.

Local notes are also trading mostly lower against Asean currencies.

The ringgit eased against the Thai baht to 12.8299/8408 from 12.8188/8383 on Wednesday, eased against the Singapore dollar to 3.4984/5005 from 3.4956/4996, and eased against the Indonesian rupiah at 295.6/295.9 from 295.2/295.7.

The local currency was unchanged against the Philippine peso at 8.26/8.27.