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 6pm today to 3.9230/3.9275 from 3.9540/3.9575 at yesterday’s close.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said market focus would be on BNM’s MPC meeting, in which economists widely believe that the OPR will remain unchanged at 2.75%.
“The key highlights will be the latest assessment on inflation and growth prospects of Malaysia.
“For now, the ringgit seems to be in a sweet spot as the macro numbers have been encouraging while the government remains mindful in its response to the current economic shocks,” he told Bernama.
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.
“Additionally, the US Dollar Index (DXY) declined 0.38% to 98.068 points, while risk appetite improved quite significantly too, with benchmark equities rising in the Asian region,” he said.
Meanwhile, SPI Asset Management managing partner Stephen Innes said the local note resilience was supported by improving geopolitical sentiment, which helped lift broader risk appetite across Asian markets.
He said market sentiment improved after Trump signalled progress towards a potential “final agreement” with Iran, reinforcing the market’s belief that tensions in the Middle East may be shifting.
“That development added fresh momentum to an already constructive backdrop for risk assets, particularly as global technology shares continued to rally and support regional equity inflows,” he said.
At the close, the ringgit traded mostly higher against a basket of major currencies.
It strengthened against the euro to 4.6189/4.6242 from 4.6288/4.6329 at yesterday’s close, rose versus the British pound to 5.3443/5.3504 from 5.3622/5.3670 previously, but inched down against the Japanese yen to 2.5159/2.5191 from 2.5138/2.5163.
The local currency was also mostly higher against regional peers.
It appreciated against the Singapore dollar to 3.0946/3.0986 from 3.1013/3.1042 at yesterday’s close, gained versus the Indonesian rupiah to 225.6/225.9 from 227.2/227.5 previously, edged up against the Philippine peso to 6.39/6.41 from 6.43/6.44 and eased versus the Thai baht to 12.1866/12.2074 from 12.1064/12.1223.