Ringgit Opens Mixed as Investors Weigh BOJ Rate Hike Impact

The Malaysian ringgit opened mixed against major and ASEAN currencies on Monday as investors weighed in on the Bank of Japan's (BOJ) interest rate hike.

Last Friday, the BOJ raised interest rates by 0.25 per cent to 1.25 per cent, their highest level in 31 years.

This move has raised concerns about the ease of unwinding the yen carry trade and higher crude oil prices could mean elevated inflation, according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.

The Malaysian economy has performed well with a growth rate of 5.2 per cent last year and 5.7 per cent in the first half of this year, making normalising the overnight policy rate back to 3.00 per cent the right decision, Dr Mohd Afzanizam said.