Ringgit opens firmer vs US dollar after BNM holds OPR

At 8am on Friday, the Malaysian ringgit opened stronger against the US dollar, driven by enhanced sentiment following Bank Negara Malaysia's decision to maintain its overnight policy rate (OPR) at 2.75%. Earlier that day, the Monetary Policy Committee (MPC) had decided to keep the OPR unchanged. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid noted that this decision, amidst solid economic growth and controlled inflation, put Malaysia in a "sweet spot" and reflected the central bank's policy flexibility.

This stability can serve as a positive factor for holding onto the ringgit. Moreover, the ringgit's favorable performance was further supported by a weaker US dollar, following comments by Federal Reserve Governor Christopher Waller, who suggested that the Fed may keep interest rates steady at their September meeting if inflation continues to ease towards its 2% target.

Waller's remarks added to the pressure on the US dollar, benefiting currencies of emerging markets, including the ringgit. Across various currencies, the ringgit showed mixed performance. It was weaker against the Japanese yen, the British pound, and the euro, but remained relatively stable against the Singapore dollar, Thai baht, and Indonesian rupiah.