Ringgit ends marginally higher against US dollar after BNM maintains OPR

KUALA LUMPUR, Sept 3 — The Malaysian ringgit ended slightly higher against the US dollar on Thursday, as the country's central bank, Bank Negara Malaysia (BNM), maintained the overnight policy rate (OPR). BNM affirmed that the current monetary policy stance aligns with the outlook for sustained price stability and robust economic development.

The ringgit closed at 4.0405/0445 against the US dollar, which is an improvement from yesterday's close of 4.0435/0475. The OPR remained at 2.75 percent during the bank's meeting, as economic data indicated strong global growth driven by robust technology expansion, improving supply conditions, and stable labor markets. Forecasts suggest that Malaysia's economic growth could reach approximately five percent in 2026, with the economy's solid fundamentals supporting continued resilience in 2027.

Analysts noted that the ringgit's stability was influenced by anticipation of US non-farm payrolls (NFP) data, which were released on Friday night. The ADP Employment Report showed lower-than-expected job growth in August, potentially affecting market expectations for the NFP. Additionally, the hawkish statement from the US Federal Reserve chairman last week contributed to market uncertainty, leading to fluctuations in the ringgit's value against major currencies.

Compared to a basket of major currencies, the ringgit slipped against the euro, British pound, Japanese yen, Philippine peso, Singapore dollar, Thai baht, and Indonesian rupiah.