Kuala lumpur: The ringgit opened higher against the US dollar on Wednesday ahead of Bank Negara Malaysia (BNM)'s Monetary Policy Committee (MPC) meeting tomorrow, where policymakers will assess inflation and growth, key factors shaping the outlook for the Overnight Policy Rate. At 8 am, the domestic unit traded at 3.9530/9635 against the greenback, compared with 3.9600/9635 at Tuesday's close.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that markets would also focus on the MPC meeting, particularly the accompanying statement. The bank's research indicates that the ongoing conflict in Iran is beginning to impact Malaysia's inflation, with the Consumer Price Index (CPI) rising 1.7 percent year-on-year to 136.4 points in March 2026, compared with 1.4 percent in February.

Mohd Afzanizam further explained that concerns over the West Asia crisis continued to weigh on market sentiment. "Yesterday, the ringgit weakened 0.15 percent to RM3.9618 against the US dollar. In light of the latest developments, it is likely to appreciate, although gains are expected to be measured," he said.

At the open, the ringgit traded mixed against a basket of major currencies. It strengthened against the Japanese yen to 2.5065/5133 from 2.5138/5163 at Tuesday's close, but weakened against the euro to 4.6305/6428 from 4.6288/6329, and edged lower versus the British pound to 5.3626/3769 from 5.3622/3670.

The local currency showed a varied performance against regional peers. It rose against the Indonesian rupiah to 226.8/227.5 from 227.2/227.5, but fell against the Singapore dollar to 3.1021/1108 from 3.1013/1042, weakened versus the Thai baht to 12.1803/2187 from 12.1064/1223, and eased against the Philippine peso to 6.4240/4400 from 6.4300/4400 previously.