The ringgit rose towards a one-year high against the US dollar on Friday morning, after Bank Negara Malaysia (BNM) kept the Overnight Policy Rate (OPR) unchanged at 2.75%.
At 9.50am, the ringgit was at 4.1710, up 0.24% against the US dollar since it opened early Friday in Asian trading.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the central bank's decision to maintain its policy rate while the United States faces the prospect of monetary easing could benefit ringgit-denominated assets.
A stable OPR stance and the narrowing prospect of lower interest rates in the United States will provide an advantage for the ringgit as the rate differential narrows.
The US Dollar Index (DXY) slipped below the 100-point mark to 99.72 on signs of continued weakness in the US labor market.
He added that the latest data showed more than 150,000 job losses in October, the highest in 20 years. This further strengthened expectations that the Federal Reserve may cut interest rates at its December meeting.
At the same time, the ringgit was mixed against other major currencies.
It fell against the yen to 2.7305/7375 from 2.7202/7220 and fell against the British pound to 5.4864/5002 from 5.4696/4729. It also weakened against the euro to 4.8220/8342 from 4.8143/8172.
The ringgit was also stronger against other Asean regional peers.
It rose against the Singapore dollar to 3.2017/2103 from 3.2034/2055 and improved against the Thai baht to 12.8829/9285 from 12.9178/9311. It also rose against the Indonesian rupiah to 250.0/250.7 from 250.3/250.6 and the Philippine peso to 7.08/7.10 from 7.09/7.10 previously.
