Ringgit Opens Slightly Firmer Against Greenback Ahead Of BNM Policy Decision

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, Sept 4 (Bernama) -- The ringgit opened slightly firmer against the US dollar on Thursday ahead of Bank Negara Malaysia’s (BNM) decision on the overnight policy rate (OPR), with markets widely expecting the central bank to leave the rate unchanged at 2.75 per cent.

At 8 am, the local note rose to 4.2125/2330 from Wednesday’s close of 4.2230/2285.

IPP Wealth Managers Ltd investment strategist and country economist Mohd Sedek Jantan said BNM was likely to keep the OPR steady at 2.75 per cent at today’s Monetary Policy Committee (MPC) meeting, in line with efforts to support domestic economic growth.

“With headline inflation at 1.2 per cent and unemployment at 3.0 per cent, this approach ensures policy stability, supports domestic demand and keeps monetary conditions accommodative without adding inflationary pressure.

“The latest macroeconomic indicators also show resilience, with July exports posting positive growth, reinforcing confidence in Malaysia’s external sector,” he told Bernama.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Job Openings and Labour Turnover Survey for July showed job openings fell below expectations to 7.181 million, compared with the consensus forecast of 7.38 million.

That, he said, had fuelled hopes of a potential US Federal Reserve rate cut in September.

“This suggests employers are cautious about expanding their workforce amid a weaker economic outlook.

“On that note, the ringgit could see further appreciation,” he said.

Mohd Afzanizam said the ringgit closed 0.13 per cent higher against the US dollar at 4.2257 on Wednesday, and expects it to trade in the 4.21–4.23 range today.

The United States will release its closely watched non-farm payrolls report on Friday.

The ringgit was mixed against major currencies. It rose against the euro to 4.9126/9365 from 4.9223/9287 but slipped versus the yen to 2.8469/8609 from 2.8430/8469 and the pound to 5.6620/6896 from 5.6614/6687.

Against ASEAN currencies, the ringgit traded mostly firmer. It strengthened against the rupiah to 256.5/257.9 from 257.2/257.7, advanced against the Singapore dollar to 3.2706/2867 from 3.2777/2822, gained on the peso to 7.35/7.39 from 7.37/7.38, and edged up against the baht to 13.0454/1158 from 13.0529/0759.

-- BERNAMA