Ringgit ends marginally higher as BNM maintains OPR, sees resilient growth

At the close of business on Thursday, the Malaysian ringgit closed marginally higher against the US dollar, thanks to the Malaysian central bank, Bank Negara Malaysia (BNM), maintaining the overnight policy rate (OPR). BNM stated that the current monetary policy stance aligns with the outlook for sustained price stability and steady economic growth.

The ringgit was quoted at 4.0405/0445 against the US dollar, marking a slight improvement from Wednesday's close of 4.0435/0475. The central bank maintained the OPR at 2.75 percent during its meeting today, citing resilient global growth driven by strong technology expansion, improving supply conditions, and stable labor markets.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the ringgit has been trading within a narrow range against the US dollar, awaiting the US non-farm payrolls (NFP) figures due to be released on Friday night. Private-sector employment data for August indicated a modest increase of 38,000 jobs, potentially leaving market participants anticipating a disappointing non-farm payrolls report.

The markets were also reacting to a hawkish statement from the US Federal Reserve chairman, and the upcoming data will determine how market sentiment evolves. Against a basket of major currencies, the ringgit weakened against the euro, British pound, Japanese yen, and regional currencies, trading flat against the Philippine peso and declining against the Singapore dollar, Thai baht, and Indonesian rupiah.