The ringgit opened higher against the US dollar on the first trading day of November, nearing a one-year high, with traders expecting the overnight policy rate (OPR) to remain unchanged at 2.75%.
At 9.50am, the ringgit was at 4.1950, down 0.26% against the US dollar since it opened early Monday in Asian trading.
It had touched around RM4.18, close to its annual high of RM4.1760 on October 2, 2024.
Bank Muamalat Malaysia Bhd Chief Economist Dr Afzanizam Rashid said the ringgit was expected to maintain positive momentum ahead of Bank Negara Malaysia's monetary policy committee (MPC) decision on November 6 this week.
He expected the OPR to remain unchanged as the narrowing of the interest rate differential between the OPR and the policy rates of developed countries was seen as the main driver of the ringgit, especially as BNM is expected to maintain its monetary stance based on stable economic growth and benign inflation rates going forward.
Afzanizam further said that the federal government's strong commitment to reduce the budget gap to 3.5% of gross domestic product next year will be credit positive, which will encourage foreign investors to buy government securities.
With the US data shortage due to the US government shutdown, traders are likely to look at domestic factors to form their opinion on the currency's movement.
Expect USD/MYR to range between 4.18 and 4.20 today.
At the open, the ringgit traded higher against major currencies.
The ringgit rose against the yen to 2.7104/2.7242 from 2.7162/2.7210 at last Friday's close, strengthened against the British pound to 5.4889/5.5165 from 5.5025/5.5117 and rose against the euro to 4.8177/4.8419 from 4.8453/4.8534 previously.
The local note traded mostly higher against Asean currencies.
It improved against the Singapore dollar to 3.2103/3.2267 from 3.2185/3.2241 at last Friday's close, rose against the Thai baht to 12.8683/12.9425 from 12.9429/12.9702, was almost flat against the rupiah to 251.3/252.6 from 251.7/252.2 and was marginally better against the Philippine peso at 7.11/7.15 from 7.12/7.14 previously.
