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THE ringgit opened marginally higher against the US dollar on Tuesday, although cautious trading is expected ahead of Bank Negara Malaysia’s Monetary Policy Committee meeting on Thursday and the US non-farm payrolls report on Friday.
At 8am, the local currency stood at 4.2205/4.2300 against the greenback, up from Friday’s closing level of 4.2230/4.2275.
Bernama reported Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid anticipates that the central bank will maintain the overnight policy rate (OPR) at 2.75 per cent.
“BNM has delivered a pre-emptive cut in OPR. I suppose the degree of monetary policy accommodation is sufficient to support growth,” he said.
“More importantly, markets would want to see the latest assessment by the central bank concerning the current state of the economy and its prospects.”
On the global front, Afzanizam highlighted the recent drop in the University of Michigan’s Consumer Sentiment Index (CSI), which fell to 58.2 points in August—below consensus expectations of 58.6. This compares to an average of 59.8 points in the first eight months of this year, down from 73.0 over the same period in 2024.
“The figures suggest consumers have become more wary of the state of the US economy,” he noted.
He added that Friday’s US non-farm payrolls report will be closely watched ahead of the Federal Reserve’s next interest rate decision on 17 September.
“Consensus estimates have put NFP at 74,000 in August, slightly higher than July’s 73,000,” Afzanizam said.
He predicted the ringgit could trade between 4.21 and 4.22 against the US dollar today, noting that the greenback has been on a depreciating trend against several major currencies.
Despite the firmer opening against the US dollar, the ringgit was mostly lower against a basket of major and regional currencies.
It strengthened slightly against the Japanese yen at 2.8690/2.8758 from 2.8708/2.8741 last Friday but eased against the British pound to 5.7171/5.7300 from 5.6833/5.6894. It also slipped against the euro to 4.9443/4.9554 from 4.9291/4.9343.
Among regional peers, the ringgit weakened against the Indonesian rupiah to 257.0/257.7 from 255.9/256.3, the Singapore dollar to 3.2875/3.2952 from 3.2859/3.2899, and the Thai baht to 13.0601/13.0976 from 13.0327/13.0519.
However, it firmed slightly against the Philippine peso, trading at 7.37/7.40 from Friday’s 7.39/7.40. - Sept 2, 2025