Kuala lumpur: The ringgit continued its upward momentum, closing mostly higher against most major currencies and regional peers on improved sentiment as investors await the decision on the Overnight Policy Rate (OPR).
According to BERNAMA News Agency, Bank Negara Malaysia (BNM) will hold its third Monetary Policy Committee (MPC) meeting tomorrow ahead of the announcement. The ringgit also rose against the US dollar at 6 pm today to 3.9230/9275 from 3.9540/9575 on Tuesday’s close.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid stated that market focus would be on the BNM’s MPC meeting, in which economists widely believe the OPR remained unchanged at 2.75 per cent. Mohd Afzanizam also said the ringgit appreciated against the US Dollar as crude oil prices fell, following President Donald Trump’s announcement regarding the suspension of Project Freedom, amid Washington’s hopes for a resolution with Iran.
Meanwhile, SPI Asset Management managing partner Stephen Innes noted that the local note resilience was supported by improving geopolitical sentiment, which helped lift broader risk appetite across Asian markets. He mentioned that market sentiment improved after Trump signalled progress towards a potential ‘final agreement’ with Iran, reinforcing the market’s belief that tensions in West Asia may be shifting.
At the close, the ringgit traded mostly higher against a basket of major currencies. It strengthened against the euro to 4.6189/6242 from 4.6288/6329 at Tuesday’s close, rose versus the British pound to 5.3443/3504 from 5.3622/3670 previously, but inched down against the Japanese yen to 2.5159/5191 from 2.5138/5163 yesterday.
The local currency was also mostly higher against regional peers. It appreciated against the Singapore dollar to 3.0946/0986 from 3.1013/1042 at Tuesday’s close, gained versus the Indonesian rupiah to 225.6/225.9 from 227.2/227.5 previously, edged up the Philippine peso to 6.39/6.41 from 6.43/6.44 yesterday, but eased versus the Thai baht to 12.1866/2074 from 12.1064/1223.