Ringgit Eases Slightly Ahead Of Bnm S Opr Decision

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 The monetary policy committee will deliberate on the overnight policy rate decision tomorrow, says analyst.
KUALA LUMPUR: The ringgit ended slightly lower against the US dollar at today’s close, ahead of Bank Negara Malaysia’s (BNM) overnight policy rate (OPR) decision tomorrow, said an analyst
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid said the monetary policy committee (MPC) would deliberate on the OPR decision, with economists expressing varied opinions on the likely outcome.
“Some (economists) have pencilled in for a 25 basis points cut while others are of the view that the benchmark interest will stay unchanged at 3%,” he told Bernama.
Afzanizam said geopolitical risks are once again on traders’ radar, with the latest military encounter between India and Pakistan having led to anxiety over how it might impact the global economy.
“Additionally, the ringgit continues to depreciate against the US dollar for two consecutive days after the US dollar-ringgit reached RM4.20 on Monday.
“This is in tandem with other currencies’ performance, with the US Dollar Index (DXY) up by 0.24% to 99.478 points,” he said.
Meanwhile, SPI Asset Management managing partner Stephen Innes said the ringgit was leaning slightly weaker ahead of the Federal Open Market Committee meeting’s outcome.
“The US Federal Reserve is likely to keep interest rates unchanged, though its messaging may lean towards a neutral or slightly hawkish stance.
“In contrast, BNM may adopt a softer tone tomorrow, given the weakening domestic economic conditions. This policy divergence continues to weigh on the ringgit,” he noted.
At 6pm, the local note inched lower to 4.2360/4.2435 versus the greenback compared to yesterday’s close of 4.2285/4.2360.
At the close, the ringgit traded lower against a basket of major currencies.
It dropped versus the Japanese yen to 2.9556/2.9613 from 2.9502/2.9556 at yesterday’s close, depreciated vis-a-vis the euro to 4.8104/4.8189 from 4.7824/4.7909, and eased against the British pound to 5.6479/5.6579 from 5.6302/5.6402 previously.
Similarly, the ringgit performed weaker against its Asean peers.
It rose versus the Indonesian rupiah to 256.1/256.7 from yesterday’s close of 257/257, declined versus the Singapore dollar to 3.2802/3.2862 from 3.2749/3.2812, and edged lower against the Philippine peso to 7.64/7.66 from 7.60/7.62.
However, the local note remained stable against the Thai baht at 12.9383/12.9691, compared to yesterday’s rate of 12.9399/12.9700. - FMT

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