The ringgit opened higher against the US dollar on Monday as the local market maintained a cautious mode ahead of Bank Negara Malaysia's monetary policy committee (MPC) meeting on Wednesday, amid growing expectations of a potential cut in the overnight policy rate (OPR).
At 10.10am, the ringgit was at 4.2260, unchanged against the US dollar since it opened at the start of the week.
Bank Muamalat Malaysia Sdn. Bhd Chief Economist Dr Afzanizam said the OPR was expected to be cut by 25 basis points as rising economic uncertainty could potentially dampen second-half growth momentum.
He added that there was a clear justification for BNM to support growth.
He also noted that traders would also remain cautious against the US dollar as investors and traders await clarity ahead of the deadline for the United States (US) tariff deferral, which is also on July 9.
Given the ongoing tariff uncertainty, Mohd Afzanizam said the ringgit is expected to trade cautiously between RM4.22 and RM4.23 today.
It strengthened against the Japanese yen to 2.9115/9297 from 2.9225/9282, strengthened against the British pound to 5.7412/7767 from 5.7601/7710, and appreciated against the euro to 4.9542/9849 from 4.9675/9770.
The local note also appreciated against most Asean currencies.
It rose against the Singapore dollar to 3.3006/3213 from 3.3114/3182, strengthened against the Thai baht to 12.9823/13.0730 from 13.0302/0609, rose against the Indonesian rupiah at 259.8/266.2, and the Philippine from 259.8/266.2 and the peso to 7.45/7.50 from 7.47/7.49 previously.
