Ringgit Surges Ahead of BNM's OPR Decision

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

At 8am, the local currency rose to 4.0385/0455 against the greenback from Wednesday's close of 4.0435/0475.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market attention in recent days had centred on Federal Reserve (Fed) chair Kevin Warsh's speech at the Jackson Hole Symposium last Friday, with his remarks on elevated inflation interpreted as a signal that a rate hike could be on the table at the Fed's Federal Open Market Committee meeting in mid-September.

This has led to a correction in the value of the ringgit against the US dollar, and Mohd Afzanizam expects the ringgit to improve slightly on Thursday, although it is likely to remain in a narrow trading range.