Kuala lumpur: The ringgit closed firmer against the US dollar on Thursday, supported by improved market sentiment following Bank Negara Malaysia's (BNM) decision to maintain the overnight policy rate (OPR).

According to BERNAMA News Agency, earlier today, the Malaysian central bank, during its first Monetary Policy Committee (MPC) meeting of 2026, decided to maintain the OPR at 2.75 per cent. At 6 pm, the local currency rose to 4.0370/0415 against the greenback from 4.0445/0495 at Wednesday's close.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that "the positive assessment by the BNM on the state of the economy after announcing their decision to keep the OPR steady at 2.75 per cent also contributed positively to the ringgit strength." He mentioned that the ringgit could possibly break the 4.00 level against the greenback in the near future if the positive sentiment continues.

The local note also ended mostly higher versus other major currencies. It appreciated against the Japanese yen to 2.5440/5469 from 2.5598/5631 on Wednesday and gained against the euro to 4.7205/7257 from 4.7337/7395. However, it inched down against the British pound to 5.4273/4334 from 5.4237/4304 yesterday.

The ringgit traded mixed against ASEAN currencies. It rose against the Singapore dollar to 3.1441/1478 from 3.1502/1543 on Wednesday and strengthened against the Thai baht to 12.8587/8792 from 13.0086/0301. The local note remained unchanged against the Philippine peso at 6.82/6.83 but eased slightly against the Indonesian rupiah to 238.9/239.3 from 238.7/239.3.