Ringgit holds steady as investors cautious ahead of BNM OPR decision amid Gulf tensions

THE ringgit was little changed at the start of trading, reflecting a market in wait-and-see mode ahead of the Bank Negara Malaysia Monetary Policy Committee meeting scheduled for 7 May, even as external developments continued to weigh on investor outlook.

At 8am, the ringgit was quoted at 3.9540/9590 against the US dollar, compared with 3.9540/9575 at the previous close, indicating minimal movement as traders held positions ahead of key policy signals.

The steady opening comes amid a complex backdrop in which domestic monetary expectations are being shaped alongside heightened volatility in global oil markets and rising geopolitical risk.

Dr Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia, said investors were largely in a holding pattern ahead of the central bank meeting, even as tensions escalated following renewed exchanges of fire between United States and Iranian forces in the Persian Gulf.

He cautioned that the situation could further destabilise already fragile energy markets and feed into inflationary pressures.

"Escalation in West Asia has consequently seen global oil benchmark WTI and Brent crude prices jumped 4.39 per cent and 5.80 per cent to US$106.42 per barrel and US$114.44 per barrel, respectively.

"Today, the ringgit is expected to depreciate against the US dollar in light of the latest developments. Clearly, market sentiment will continue to revolve around the war in West Asia and the ensuing oil supply shock, which would exert upward pressure on inflation," he told Bernama.

Oil prices have been highly volatile amid concerns over potential disruptions to supply routes, particularly through key maritime corridors in the Gulf, with both West Texas Intermediate and Brent crude sharply higher on renewed risk fears.

Despite the pressure against the US dollar, the ringgit strengthened against several major currencies. It rose to 2.5151/5184 against the Japanese yen, gained to 5.3498/3565 versus the British pound, and appreciated to 4.6230/6289 against the euro.

The local currency also advanced against regional peers, strengthening to 3.0963/1005 versus the Singapore dollar, 12.0740/0963 against the Thai baht, and 227.3/227.6 against the Indonesian rupiah, while remaining unchanged against the Philippine peso at 6.42/6.43. - May 5, 2026