The ringgit opened trading on Wednesday with a strengthening against the United States (US) dollar ahead of Bank Negara Malaysia's (BNM) Monetary Policy Committee (MPC) meeting scheduled for tomorrow.
At 9:51am, the ringgit was trading at 3.9490, up 0.28% since it opened early Wednesday in the Asian session.
The meeting will allow policymakers to assess the level of inflation and growth, which are key factors influencing and shaping the outlook for the Overnight Policy Rate (OPR).
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the market would continue to focus on the upcoming MPC meeting, especially the statement to be issued after the meeting.
He said the outlook for the second quarter of 2026 remained strong even as the market was also closely monitoring the further impact of tensions in the Middle East.
According to a Bank Muamalat research note, the impact of the war in Iran can be seen on Malaysia's inflation rate, with the Consumer Price Index (CPI), which measures general price levels and inflation, increasing by 1.7 percent year-on-year to 136.4 points in March 2026, compared to 1.4 percent in the previous month.
Mohd Afzanizam also stressed that concerns over the crisis in West Asia are still affecting market sentiment.
He also said the ringgit depreciated by 0.15 percent to RM3.9618 against the US dollar on Tuesday following the latest developments. However, the ringgit is expected to strengthen, albeit at a moderate pace.
In addition, in the early session today, the ringgit was traded mixed against major world currency groups.
The ringgit strengthened against the Japanese yen to 2.5065/5133 from 2.5138/5163 yesterday, but fell against the euro to 4.6305/6428 from 4.6288/6329 and depreciated against the British pound to 5.3626/3769 from 5.3622/3670.
Against regional currencies, the ringgit mostly depreciated.
The ringgit strengthened against the Indonesian rupiah to 226.8/227.5 from 227.2/227.5 yesterday but fell against the Singapore dollar to 3.1021/1108 from 3.1013/1042, depreciated against the Thai baht to 12.1803/2187 from 12.1064/1223 and declined against the Philippine peso to 6.42/6.44 from 6.43/6.44 previously.
