Bank Negara maintained the overnight official rate (OPR) at 3% and the ringgit extended its gains against the US dollar this morning, returning to the 4.6 level, supported by domestic indicators and favorable external factors.
The ringgit opened at 4.69 against the US dollar this morning, appreciating 0.23 percent compared with 4.701 at yesterday’s close, according to Bank Negara data.
Bank Muamalat chief economist Mohammad Afazni Jim said the ringgit has shown a favorable trend this week.
“China’s export data was higher and beat expectations, suggesting that China’s external sector is improving and the Yuan could be well supported. Given that the ringgit is correlated to the yuan’s movement, it may provide support to the ringgit today.”
In addition, the US Dollar Index was down 0.54% at 102.81 at market close on Thursday.
Bank Negara announced yesterday that it would maintain interest rates, saying that the current level of interest rates and monetary policy stance remain adequate to support the country’s economy and are consistent with the current assessment of the inflation and growth outlook.
The Monetary Policy Committee (MPC) remains vigilant to current developments while it will ensure that the monetary policy stance continues to be conducive to economic growth in the context of price stability.
Despite strengthening against the US dollar, the ringgit opened 0.03% weaker against the Singapore dollar at 3.5202.
