Ringgit Strengthens Against Greenback Ahead of OPR Decision
Market Sentiment Improves
The ringgit extended its gains against the US dollar at the opening on Wednesday, driven by improved sentiment ahead of Bank Negara’s (BNM) announcement on the overnight policy rate (OPR) later today.
Current Exchange Rates
At 8am, the ringgit appreciated to 4.3310/4.3480 against the dollar, rising from yesterday’s close of 4.3415/4.3505.
Economic Analysis
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid noted that the US Dollar Index (DXY) fell further to 103.423 points, representing a decline of 0.44% as Americans headed to the polls on Tuesday.
“On that note, the ringgit could follow suit by staging further appreciation as the markets await the BNM’s Monetary Policy Committee decision on the OPR today where the rate could remain unchanged at 3.00%,” he added.
Performance Against Other Currencies
The ringgit was weaker against a basket of major currencies. It fell vis-a-vis the British pound to 5.6476/5.6698 from 5.6361/5.6478, depreciated versus the Japanese yen to 2.8603/2.8719 from 2.8525/2.8586, and edged down against the euro to 4.7351/4.7537 from 4.7283/4.7381.
However, it was higher against Asean currencies, perking up against the Indonesian rupiah to 274.9/276.2 from 275.6/276.3, and rising against the Thai baht at 12.9056/12.9714 from 12.9165/12.9491, and against the Philippine peso to 7.42/7.46 from 7.44/7.46. It was slightly lower vis-a-vis the Singapore dollar at 3.2973/3.3110 from Tuesday’s close of 3.2953/3.3023.
Conclusion
The ringgit’s appreciation against the US dollar is a positive sign, indicating a potential increase in investor confidence in the Malaysian economy. As the market awaits the OPR decision, it is likely that the ringgit will continue to strengthen, driven by improved sentiment and economic optimism.
FAQs
* What is the current exchange rate of the ringgit against the US dollar?
+ The ringgit is currently trading at 4.3310/4.3480 against the dollar.
* What is the expected outcome of the OPR decision?
+ The market expects the OPR to remain unchanged at 3.00%.
* How did the ringgit perform against other major currencies?
+ The ringgit was weaker against the British pound, Japanese yen, and euro, but stronger against Asean currencies such as the Indonesian rupiah, Thai baht, and Philippine peso, and the Singapore dollar.