KUALA LUMPUR: The ringgit opened higher against the US dollar and major currencies on Monday, supported by expectations of a possible overnight policy rate (OPR) normalisation ahead of Bank Negara Malaysia’s Monetary Policy Committee (MPC) meeting this Thursday.
At 8am, the local note was slightly higher at 4.0550/4.0635 against the greenback from last Friday’s close of 4.0555/4.0600.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid opined that the MPC members would decide to raise the OPR by 25 basis points (bps).
He said the pre-emptive rate cut in July 2025, which lowered the OPR from three per cent to 2.75%, had served its purpose, as concerns over slower economic growth following the tariff shock had not materialised.
