THE ringgit opened slightly stronger against the US dollar, holding within a narrow trading band as investors adopted a wait-and-see approach ahead of key domestic and global developments expected to influence market direction.
The local currency rose to 3.9590/9725 against the greenback at the start of trading, compared with 3.9690/9740 at the previous close, following a market break for Labour Day.
Market sentiment remained cautious as attention shifted to the upcoming monetary policy decision by Bank Negara Malaysia, alongside external uncertainties including tensions involving Iran and the release of crucial United States labour market data.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the Monetary Policy Committee meeting on May 7 would be a central focus, with expectations that the overnight policy rate will remain unchanged.
“Most economists expect the OPR to be unchanged and the latest assessment on the Iran war sees no signs of ebbing while crude oil prices remain elevated,” he said.
He noted that the United States non-farm payroll data due later this week would be pivotal in shaping expectations for interest rate decisions by the Federal Reserve.
“There is also the NFP data points in the US on Friday which is quite critical for US Federal Reserves decision on rates. In that sense, we expect the ringgit to maintain its narrow range posture as market sentiments will remain cautious,” he said.
He projected the currency to trade between RM3.95 and RM3.97 against the US dollar in the near term.
Despite its firmer opening against the greenback, the ringgit showed mixed performance against other major currencies, weakening against the Japanese yen, remaining largely unchanged versus the euro, and easing against the British pound.
Against regional currencies, the ringgit also traded unevenly, slipping against the Singapore dollar and Thai baht while edging higher against the Indonesian rupiah and Philippine peso.
With multiple risk factors in play, traders are expected to remain on the sidelines in the short term, weighing domestic policy signals against global economic indicators and geopolitical developments before making decisive moves. - May 4, 2026
