Business

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

The currency opens stable against the US dollar as markets adopt a cautious stance ahead of an upcoming monetary policy decision, while renewed geopolitical tensions add pressure to risk sentiment

Updated 6 months ago · Published on 05 May 2026 9:17AM

Ringgit holds steady as investors cautious ahead of BNM OPR decision amid Gulf tensions
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 - May 5, 2026

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

Spotlight

Malaysia

Asyraf denies Najib ready to pay RM50m fine for house arrest

Malaysia

Malaysia’s average household size falls to 3.8 people

Malaysia

Najib's former wife Tengku Puteri Zainah in critical condition in ICU

Malaysia

More than 117,000 harmful online posts removed as government steps up enforcement

Malaysia

1,000 families receive Deepavali aid to ensure no one misses festive celebrations

Malaysia

Mother, daughter fined RM500 each for obstructing Muar council enforcement officers

Malaysia

Kelantan records 1,446 khalwat cases in three years

Malaysia

Negeri’s deposed Undang, chieftains fail to stop committal proceedings

You may be interested

Business

Energy disruptions - a timely reminder that energy, economic security are interconnected - Minister

By Ian McIntyre

Business

Ringgit strengthens as easing US-Iran tensions weigh on US dollar

Business

Oil prices plunge as US midterm results raise hopes of Iran war de-escalation

Business

Oil ‘cocktail’ exports place Malaysia’s palm oil credentials under scrutiny - expert