KUALA LUMPUR– The Malaysian ringgit opened higher against the US dollar on the first trading day of May, as markets await the Monetary Policy Committee (MPC) meeting of Bank Negara Malaysia (BNM) this week, along with key developments in the US-Iran conflict and upcoming US non-farm payroll data.
At 8am, the local currency strengthened to 3.9590/9725 against the greenback, compared to 3.9690/9740 at Thursday’s close. The local market was closed on Friday for Labour Day holiday.
Dr Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, said the MPC is scheduled to decide on the Overnight Policy Rate (OPR) this Thursday. Most economists expect the rate to be maintained, but the focus will be on BNM’s latest assessment of global risks.
“The more important factor is the latest assessment on the Iran war, which shows no signs of easing, while crude oil prices remain high,” he said.
He added that the US non-farm payrolls data due on Friday will also be crucial for the Federal Reserve’s interest rate decisions.
“As such, we expect the ringgit to remain in a narrow range today due to cautious market sentiment,” Dr Mohd Afzanizam told Bernama.
He forecasted the US dollar-ringgit pair to trade between RM3.96 and RM3.98 for the day.
Performance Against Other Currencies The ringgit traded mostly lower against major currencies. It weakened against the Japanese yen, was nearly flat against the euro, and eased against the British pound.
Against regional currencies, the ringgit was mixed — weaker versus the Singapore dollar and Thai baht, but stronger against the Indonesian rupiah and Philippine peso.
The ringgit’s movement this week will be closely watched as investors weigh domestic monetary policy, geopolitical tensions, and global economic indicators.
