Ringgit Surges on BNM Optimism and Fed Policy Hopes

The Malaysian ringgit opened higher against the US dollar on July 29, boosted by positive comments from Bank Negara Malaysia Governor Datuk Seri Abdul Rasheed Ghaffour and expectations of a shift in US Federal Reserve policy.

At 8am, the local currency edged up to 4.0880/0940 against the greenback, compared to yesterday's closing of 4.0885/0930.

An analyst noted that market sentiment improved after Abdul Rasheed said Malaysia's economy remains well on track to grow by 4.0-5.0 per cent, likely towards the upper end of the range, with manageable inflation in 2026, despite the energy supply shock.

Meanwhile, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit is expected to trade cautiously ahead of the US Federal Open Market Committee (FOMC) decision tonight, hovering around RM4.08-RM4.09 against the US dollar.