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THE ringgit opened slightly firmer against the US dollar on Thursday as investors turned their attention to Bank Negara Malaysia’s impending decision on the overnight policy rate, setting aside concerns over escalating tensions in the Middle East.
At 8am, the local currency was quoted at 3.9340/9450 against the greenback, compared with 3.9395/9465 at Wednesday’s close.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the market widely expects Bank Negara Malaysia to leave the OPR unchanged, with greater emphasis placed on the tone of its accompanying statement.
“Markets will be watching the OPR decision later today. The accompanying statement will set the direction of monetary policy going forward,” he told Bernama.
He added that recent movements in global crude prices continue to be driven by developments in the Middle East, though Malaysia’s fiscal exposure to oil has diminished markedly over the past decade.
Malaysia’s oil-related revenue is projected to account for around 12.5 per cent in 2026, compared with more than 40 per cent in 2009.
“Malaysia is therefore somewhat insulated from an oil price shock. However, the country imports oil for domestic consumption, while most of its higher-grade crude is exported at better premiums. This could explain why the ringgit remains relatively resilient,” he said.
On Wednesday, the ringgit moved within a narrow band of RM3.9378 to RM3.9540 against the US dollar. Mohd Afzanizam expects similarly cautious trading conditions to persist, with investors remaining in risk-off mode amid geopolitical uncertainty.
At the open, the ringgit was mixed against major currencies.
It was flat against the Japanese yen at 2.5062/5134 from 2.5062/5108 previously, strengthened against the British pound to 5.2594/2741 from 5.2640/2733, but eased versus the euro to 4.5772/5900 from 4.5738/5819.
The local currency was firmer against most Asean peers.
It rose against the Singapore dollar to 3.0857/0946 from 3.0864/0921 at Wednesday's close, gained versus the Thai baht to 12.4494/4925 from 12.5246/5541, appreciated against the Indonesian rupiah to 232.8/233.6 from 233.1/233.7, and edged up against the Philippine peso to 6.71/6.74 from 6.72/6.74. - March 5, 2026