THE ringgit opened slightly stronger against the US dollar on Thursday, buoyed by cautious optimism ahead of Bank Negara Malaysia’s (BNM) Monetary Policy Committee meeting, where the overnight policy rate (OPR) is widely expected to be maintained at 2.75 per cent.
At 8.00am, the local currency was quoted at 4.2125/2330 against the greenback, compared with Wednesday’s close of 4.2230/2285.
Bernama reported IPP Wealth Managers Ltd investment strategist and country economist Mohd Sedek Jantan saying today that with headline inflation remaining at 1.2 per cent and unemployment at 3.0 per cent, there was little pressure for BNM to alter its monetary stance.
“With headline inflation at 1.2 per cent and unemployment at 3.0 per cent, this approach ensures policy stability, supports domestic demand and keeps monetary conditions accommodative without adding inflationary pressure.
“The latest macroeconomic indicators also show resilience, with July exports posting positive growth, reinforcing confidence in Malaysia’s external sector,” he told Bernama.
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that recent US labour market data may be lending support to emerging market currencies such as the ringgit.
Referring to the latest Job Openings and Labour Turnover Survey (JOLTS) from the United States, he said: “The July data showed job openings fell below expectations to 7.181 million, compared with the consensus forecast of 7.38 million.
“This suggests employers are cautious about expanding their workforce amid a weaker economic outlook. On that note, the ringgit could see further appreciation.”
He added that the ringgit had already closed 0.13 per cent higher against the US dollar at 4.2257 on Wednesday and is likely to trade within the 4.21–4.23 range throughout the day.
The market is now closely watching Friday’s release of the US non-farm payrolls report, a key indicator of the Federal Reserve’s next move.
Against a basket of major currencies, the ringgit was mixed. It appreciated against the euro at 4.9126/9365 compared to 4.9223/9287 previously but slipped against the Japanese yen to 2.8469/8609 from 2.8430/8469 and marginally weakened against the British pound to 5.6620/6896 from 5.6614/6687.
In regional trade, the ringgit was mostly firmer. It advanced against the Indonesian rupiah to 256.5/257.9 from 257.2/257.7, gained against the Singapore dollar to 3.2706/2867 from 3.2777/2822, rose against the Philippine peso to 7.35/7.39 from 7.37/7.38, and edged up against the Thai baht to 13.0454/1158 from 13.0529/0759. - Sept 4, 2025
