Ringgit opens mixed against major, Asean currencies as Bank of Japan rate hike weighs

KUALA LUMPUR, Sept 21 — The ringgit opened mixed against major and ASEAN currencies on Monday, as investors weighed the Bank of Japan's rate hike on Friday. The local note began the day slightly lower against the US dollar, trading at 4.0810/0865, down from last Friday's close of 4.0795/0840. The Bank of Japan's interest rate increase to 1.25 per cent, their highest in 31 years, sparked concerns about the ease of unwinding the yen carry trade.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid warned that higher oil prices could keep inflation high, potentially prompting the US Federal Reserve to continue raising rates later in the year. Despite this, Mohd Afzanizam noted that Malaysia's economy performed well, with 5.2 per cent growth last year and 5.7 per cent in the first half of 2026.

This could support the ringgit as Bank Negara Malaysia builds a policy buffer for potential future headwinds. The ringgit's performance varied against a basket of currencies, with a slight increase against the euro, a drop against the yen, and an easing against the British pound. Against its ASEAN peers, the ringgit dipped versus the Singapore dollar and Indonesian rupiah, but rose against the Thai baht and remained steady against the Philippine peso.