Ringgit Rises Near One-year High Vs US Dollar After BNM Holds OPR

By Harizah Hanim Mohamed

KUALA LUMPUR, Nov 7 (Bernama) -- The ringgit opened higher against the US dollar on Friday, after Bank Negara Malaysia (BNM) kept the overnight policy rate (OPR) unchanged at 2.75 per cent, touching the 4.17 level.

BNM yesterday maintained the OPR at its final Monetary Policy Committee (MPC) meeting of 2025.

At 8 am, the ringgit was traded at 4.1760/1865 against the US dollar compared with Thursday’s close of 4.1820/1845.

The local currency neared its previous high, last seen on Oct 2 last year, when it stood at 4.1730/1790.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that with BNM standing pat on the OPR, the prospect of lower interest rates in the United States would gradually make ringgit-denominated assets more attractive as interest rate differentials narrow.

“As such, we expect the ringgit to trade between 4.17 and 4.19 today,” he told Bernama.

On the greenback, he said the US Dollar Index (DXY) had fallen below the 100-point level to 99.720 as the labour market showed further weakness.

“As the government shutdown remains in force, traders and investors have relied on private-sector data to gauge labour market conditions.

“US data showed more than 150,000 job cuts in October, the largest reduction in 20 years. Hence, the case for an interest rate cut is building for the December meeting,” he said.

Meanwhile, IPPFA Sdn Bhd director of investment strategy and country economist Mohd Sedek Jantan said the recent upward run in the US dollar appeared to be fading, with the ringgit opening on a firmer footing against the greenback, Thai baht and Singapore dollar.

“Market attention has rotated back to the United States’ fiscal outlook, coinciding with a broad sell-off in US Treasuries and steadier performance in global equity indices,” he said.

He added that fiscal pressures remain a persistent theme in the United States, although alternative data still suggest the economy has not shifted into a sharp slowdown.

“While we continue to view December as the likeliest timing for a Federal Reserve rate cut, the path beyond that remains subject to evolving macro signals,” Mohd Sedek said.

He added that the ringgit’s stronger opening reflected both a moderation in the dollar’s momentum and a more constructive tone across regional currencies as markets stabilise.

At the opening, the ringgit was mixed against major currencies.

It slipped against the yen to 2.7305/7375 from 2.7202/7220 at Thursday’s close, weakened against the British pound to 5.4864/5002 from 5.4696/4729, and eased versus the euro to 4.8220/8342 from 4.8143/8172 previously.

However, the local note was stronger against ASEAN currencies.

It strengthened against the Singapore dollar to 3.2017/2103 from 3.2034/2055 at Thursday’s close, rose against the Indonesian rupiah to 250.0/250.7 from 250.3/250.6, and climbed against the Philippine peso to 7.08/7.10 from 7.09/7.10 previously.

The ringgit also improved against the Thai baht to 12.8829/9285 from 12.9178/9311 yesterday.

-- BERNAMA