The ringgit opened stronger against the US dollar on Thursday, as the market brushed aside Bank Negara Malaysia's (BNM) decision to cut the Overnight Policy Rate (OPR) by 25 basis points to 2.75 per cent yesterday.
At 10am, the ringgit was at 4.2460, slightly positive against the US dollar from its close of 4.2500 at the end of Wednesday.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the move reflected the market's initial reaction, possibly as market participants began to lock in profits.
He added that the OPR decision was seen as timely, given the heightened economic uncertainty following the US tariff shock.
The rate cut should be positive for the ringgit from a broader perspective, with the US dollar-ringgit pair potentially tracking back to the RM4.23 to RM4.24 range today.
He noted that the US Dollar Index (DXY) remained largely stable at around 97.555 points, with the market's focus on the Federal Open Market Committee (FOMC) minutes, which indicated members were open to cutting interest rates at their next meeting in late July 2025.
At the open, the ringgit was mostly higher against a basket of major currencies, except the Japanese yen.
It strengthened against the British pound to 5.7579/7878 from 5.7787/7842 and rose against the euro to 4.9702/9960 from 4.9780/9827.
However, it depreciated slightly against the yen to 2.8987/9140 from 2.8983/9012.
The local note was also stronger against ASEAN currencies.
It rose against the Singapore dollar to 3.3096/3271 from 3.3182/3219, rose against the Thai baht to 12.9796/13.0535 from 12.9946/13.0128, rose against the Indonesian rupiah to 260.4/262.0 from 261.3/261.8 and strengthened against the Philippine peso to 7.48/7.53 from 7.51/7.52.
