Ringgit Mixed After BOJ Rate Hike Amid Inflation Concerns

The Malaysian ringgit opened mixed against major and Asean currencies on Monday following the Bank of Japan's (BOJ) rate hike last Friday.

The local note eased to 4.0810/4.0865 against the US dollar from its previous close of 4.0795/4.0840.

Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the BOJ's rate hike raised concerns about the ease of unwinding the yen carry trade and could lead to higher inflation, which would provide the US Federal Reserve with a reason to continue raising interest rates.

Afzanizam also stated that the Malaysian economy has performed well, with last year's growth at 5.2% and first-half 2026 GDP at 5.7%, making normalizing the overnight policy rate back to 3.00% the right decision.