KUALA LUMPUR: The Malaysian ringgit appreciated against the US dollar and other major currencies on Thursday, buoyed by anticipation of a policy rate increase by Bank Negara Malaysia (BNM). Expectations of higher interest rates bolstered sentiment toward the local currency.
BNM’s Monetary Policy Committee (MPC) is set to convene its sixth and final policy meeting of 2026 today.
By 8:00 a.m., the ringgit had appreciated to 4.0585/0660 against the US dollar, compared with Wednesday’s closing rate of 4.0610/0660.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid anticipates that BNM will raise the OPR by 25 basis points at its final MPC meeting of the year.
“We expect a 25‑basis‑point hike to be implemented as a step toward normalising monetary policy, given that economic growth has continued to outpace targets this year,” he told Bernama.
Externally, Mohd Afzanizam noted that a heightened risk appetite following the United States midterm elections also supported the ringgit’s gains.
He linked the improved sentiment to broader market movements, citing a decline in Brent crude oil prices by 8.62 % to US$94.67 per barrel and a drop of eight basis points in the 10‑year US Treasury yield to 4.89 %.
Meanwhile, the S&P 500 advanced 1.58 % to close at 7,688.62 points, while the US Dollar Index (DXY) slipped 0.33 % to 101.528.
In this context, Mohd Afzanizam forecasts further appreciation of the ringgit, suggesting the ringgit‑US dollar pair could test the RM4.05 level.
Against major currencies, the ringgit rose modestly versus the Japanese yen to 2.5628/5677 from Wednesday’s 2.5636/5669, and also gained against the euro at 4.5601/5686 (previous 4.5723/5779) and the British pound at 5.4696/4797 (previous 5.4783/4850).
Among ASEAN currencies, the ringgit showed mixed performance.
It appreciated against the Singapore dollar to 3.1734/1798 from Wednesday’s 3.1771/1813 and rose slightly against the Indonesian rupiah to 223.4/223.8 from 223.5/223.8.
Conversely, the ringgit weakened against the Thai baht to 12.0746/1037 from 12.0673/0868, while remaining steady against the Philippine peso at 6.39/6.40. – Bernama
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