Ringgit rises versus greenback after OPR stays at 3%

KUALA LUMPUR: The ringgit closed higher against the greenback on Thursday, rebounding after two days of decline, as Bank Negara Malaysia (BNM) decided to keep the overnight policy rate (OPR) at three per cent.

At 6 pm, the ringgit appreciated to 4.7485/7525 against the greenback from yesterday’s close of 4.7695/7735.

SPI Asset Management managing partner Stephen Innes said the ringgit is getting a boost from the move by BNM and the holding policy should provide a welcome boost to the economy.

He said BNM’s forward guidance reiterates that the current monetary policy level “remains supportive of the economy” and “consistent with the current assessment of inflation and growth prospects”.

“As the growth outlook converges to the trend and inflation remains well-behaved, we anticipate that the BNM will maintain the OPR at three per cent throughout 2024.

“An upside risk to inflation and BNM policy rate projections in 2024 could come from more aggressive subsidy rationalisation measures than our current expectations,” he told BK.

At the close, the ringgit traded mostly lower versus a basket of major currencies.

It slipped against the Japanese yen to 3.1593/1622 from 3.1540/1569 at the close on Wednesday, weakened versus the euro to 5.0448/0491 from 5.0313/0356, but gained against the British pound to 5.7860/7909 from 5.7897/7946.

The ringgit also traded mostly lower against other Asean currencies.

It depreciated against the Singapore dollar to 3.4798/4830 from 3.4786/4820 at the close on Wednesday, decreased vis-a-vis the Indonesian rupiah to 299.4/299.8 from 299.2/299.6 and eased against the Thai baht to 13.2156/2337 from 13.1645/1803 previously.

The ringgit was higher against the Philippine peso at 8.38/8.40 from 8.39/8.40 yesterday. – BK