Ringgit Gains Ahead of Malaysian Central Bank's Interest Rate Decision

The Malaysian ringgit opened stronger against the US dollar on Thursday as investors await Bank Negara Malaysia's (BNM) Monetary Policy Committee (MPC) decision on the Overnight Policy Rate (OPR) today.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the focus will be on the MPC's OPR decision, with the central bank expected to keep the policy rate unchanged at 2.75%.

Afzanizam noted that the US Dollar Index (DXY) fell 0.12% to 99.555 points ahead of the US nonfarm payrolls data due on Friday.

The ringgit rose against major currencies, strengthening against the British pound to 5.4443/5.4537 from Wednesday's 5.4527/5.4581 and edging up against the euro to 4.6782/4.6863 from 4.6787/4.6834.

Afzanizam expects the ringgit to improve slightly today, although it is likely to remain in a narrow trading range.