Kuala lumpur: The ringgit ended firmly against most major currencies and regional peers ahead of Bank Negara Malaysia's (BNM) Monetary Policy Committee (MPC) meeting as its decision is expected to play a critical role in setting the market tone going forward. However, it eased against the US dollar at 6pm today to 3.9600/9635 from 3.9540/9575 on Monday's close.
According to BERNAMA News Agency, research firms anticipate that BNM will maintain the Overnight Policy Rate (OPR) at 2.75 per cent at its MPC meeting on Thursday. This forecast comes after Malaysia's advance first-quarter gross domestic product growth of 5.3 per cent, indicating a resilient economy despite the unsteady global situation.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid expects the local note to trade within a narrow range following the MPC meeting on May 7. He noted that market sentiment remains cautious as investors are uncertain about global central banks' interest rate decisions. While some regions, such as Australia, the Philippines, and Singapore, have tightened their monetary policies, there are concerns about global growth prospects that may require easing measures.
SPI Asset Management managing partner Stephen Innes highlighted that continued equity inflows into Malaysia's technology and semiconductor sectors have supported local assets, thereby bolstering the ringgit. Innes also pointed out that investor interest in artificial intelligence themes has provided additional support for local assets.
Despite these positive domestic factors, Innes mentioned that renewed tensions in the United States-Iran conflict have weakened risk sentiment and strengthened the US dollar, briefly pushing Brent crude oil prices toward US$114 per barrel. Overall, external factors, including oil price volatility and US dollar strength, continue to influence the ringgit, though domestic equity flows provide resilience.
At the close of trading, the ringgit showed mostly higher performance against a basket of major currencies. It edged up against the Japanese yen to 2.5138/5163 from 2.5186/5210 at Monday's close, rose against the euro to 4.6288/6329 from 4.6329/6370 previously, but slightly declined against the British pound to 5.3622/3670 from 5.3612/3660 yesterday.
The local currency also performed mostly better against regional peers. It inched up against the Singapore dollar to 3.1013/1042 from 3.1019/1049 at Monday's close, appreciated versus the Thai baht to 12.1064/1223 from 12.1460/1631, and gained against the Indonesian rupiah to 227.2/227.5 from 227.3/227.6 yesterday. However, it eased against the Philippine peso to 6.43/6.44 from 6.42/6.43 previously.