Ringgit Opens Firmer As Market Eyes Post-OPR Cut Momentum
At 8am, the local currency appreciated to 4.2350/2570 versus the greenback compared to Wednesday's close of 4.2500/2540.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the move likely reflected an initial reaction from traders locking in gains.
'The OPR decision is seen as timely, given heightened economic uncertainties following the United States' tariff shocks,' he told Bernama.
He said the rate cut should be positive for the ringgit from a broader perspective, adding that the USD/MYR pair could retrace towards the RM4.23–RM4.24 range today.
'On that note, the ringgit could see some retracement after depreciating 0.27% at yesterday's close of RM4.2520,' he added.
He also noted that the US Dollar Index (DXY) held relatively stable at around 97.555 points, as attention shifted to the upcoming Federal Open Market Committee (FOMC) minutes. The minutes suggested that members were open to interest rate cuts as early as the next meeting on July 29–30, 2025. Afzanizam further noted that the current US policy stance was 'moderately restrictive' and inflation appeared to be easing.
At the same time, the ringgit also opened higher against a basket of major currencies, except the Japanese yen. It rose against the British pound to 5.7579/7878 from 5.7787/7842 and improved against the euro to 4.9702/9960 from 4.9780/9827. However, it eased slightly versus the yen to 2.8987/9140 from 2.8983/9012.
The local note was also stronger across the board against its ASEAN counterparts. It advanced against the Singapore dollar to 3.3096/3271 from 3.3182/3219, strengthened versus the Thai baht to 12.9796/13.0535 from 12.9946/13.0128, edged up against the Indonesian rupiah to 260.4/262.0 from 261.3/261.8, and firmed against the Philippine peso to 7.48/7.53 from 7.51/7.52.
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