KUALA LUMPUR, Malaysia (July 5): The ringgit started the day higher versus the US dollar, ahead of Bank Negara Malaysia’s (BNM) Monetary Policy Committee (MPC) meeting on Thursday, when the central bank is expected to keep the existing overnight policy rate (OPR) of 1.75 percent to support the economy. The local note has gained to 4.1545/1580 against the greenback at 9.03 a.m., up from 4.1600/1650 at Friday’s close.
The projected MPC decision, according to Bank Islam Malaysia Bhd economist Adam Mohamed Rahim, will likely send signals that the economy does not require additional monetary easing, especially with the US poised to raise rates sooner than planned.
“With these factors in mind, the ringgit could trade around the RM4.15 to RM4.16 range today,” he told Bernama.
Nonetheless, he believes that the implementation of the enhanced movement control order (EMCO) in many districts of Selangor and Kuala Lumpur will continue to weaken sentiment toward the local currency.
The National Security Council agreed last week to enforce the EMCO in 34 Selangor subdistricts and some Kuala Lumpur housing zones from July 3 to 16.
Meanwhile, the ringgit was trading down versus a basket of major currencies at the start of the day.
It declined against the British pound, falling to 5.7432/7480 from 5.7188/7256 at Friday’s close, and against the euro, falling to 4.9278/9301 from 4.9171/9230.
The ringgit fell to 3.7391/7409 against the Japanese yen from 3.7303/7351 last Friday, and to 3.0847/0864 against the Singapore dollar from 3.0778/0818./n
