Ringgit Opens Mixed After BOJ Rate Hike

The Malaysian ringgit opened mixed against major and ASEAN currencies on Monday, following the Bank of Japan's (BOJ) rate hike on Friday. The local currency eased to 4.0810/0865 against the greenback from last Friday's close of 4.0795/0840.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the BOJ's rate hike raised concerns about the ease of unwinding the yen carry trade and higher crude oil prices, which could keep inflation elevated.

This would provide the US Federal Reserve with a reason to continue raising interest rates by another 25 basis points later this year, according to Dr Afzanizam. The Malaysian economy has performed well, with last year's growth at 5.2 per cent and in the first half of 2026, the gross domestic product recorded 5.7 per cent growth.

Dr Afzanizam said normalising the overnight policy rate back to 3.00 per cent would be the right decision for Bank Negara Malaysia, building up its policy buffer against potential headwinds in the future.