Ringgit strengthens against greenback ahead of OPR decision

KUALA LUMPUR: 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.

At 8 am, the ringgit appreciated to 4.3310/3480 against the dollar, rising from yesterday’s close of 4.3415/3505.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index (DXY) fell further to 103.423 points, representing a decline of 0.44 per cent 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 per cent,” he told Bernama.

The ringgit was weaker against a basket of major currencies.

It fell vis-a-vis the British pound to 5.6476/6698 from 5.6361/6478, depreciated versus the Japanese yen to 2.8603/8719 from 2.8525/8586 and edged down against the euro to 4.7351/7537 from 4.7283/7381.

The local note traded mostly higher versus ASEAN currencies.

It perked up against the Indonesian rupiah to 274.9/276.2 from 275.6/276.3, was up against the Thai baht at 12.9056/12.9714 from 12.9165/9491 and rose against the Philippine peso to 7.42/7.46 from 7.44/7.46.

However, it was slightly lower vis-a-vis the Singapore dollar at 3.2973/3110 from Tuesday’s close of 3.2953/3023.