THE ringgit began Thursday on a firmer footing against the US dollar, supported by expectations that Bank Negara Malaysia (BNM) will maintain the overnight policy rate at 2.75 per cent when it announces its decision later today.
At 8am, the local currency strengthened to 4.0350/4.0570 against the US dollar, improving from Wednesday’s close of 4.0445/4.0495, despite a modest rebound in the greenback.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the US Dollar Index rose 0.15 per cent to 98.781 after US President Donald Trump indicated he would not impose tariffs on February 1 following an agreement with the North Atlantic Treaty Organisation over Greenland.
However, he cautioned that policy unpredictability under the Trump administration would continue to unsettle global financial markets and fuel volatility, adding that the latest development should not be interpreted as a firm assurance, as conditions could still change.
Against this backdrop, he said investor focus has shifted squarely to the outcome of BNM’s Monetary Policy Committee meeting later in the day.
“We believe the OPR will be kept unchanged as the Malaysian economy remains resilient. The key outcome from this meeting will be the committee’s latest assessment of global economic conditions and how these shape its monetary policy outlook,” he said.
Afzanizam added that the US dollar-ringgit pair is likely to trade within a narrow range of between 4.04 and 4.05, as markets remain cautious but somewhat reassured by recent developments.
In early trading, the ringgit also advanced against a basket of major currencies. It strengthened against the Japanese yen to 2.5462/2.5603 from 2.5598/2.5631 on Wednesday, firmed versus the British pound to 5.4142/5.4437 from 5.4237/5.4304, and rose against the euro to 4.7101/4.7357 from 4.7337/4.7395.
The local currency was also broadly higher against regional peers. It appreciated against the Singapore dollar to 3.1389/3.1565 from 3.1502/3.1543, edged up versus the Indonesian rupiah to 238.1/239.7 from 238.7/239.3, strengthened against the Thai baht to 12.8831/12.9612 from 13.0086/13.0301, and gained against the Philippine peso to 6.80/6.85 from 6.82/6.83. - January 22, 2026
