Ringgit gains at opening as rate hike expectations support currency
Bank Muamalat’s chief economist anticipates a 25-basis-point increase as Bank Negara Malaysia prepares for its final policy meeting of 2026.
The ringgit traded at 4.0585/0660 per US dollar at 8am, improving from the previous close of 4.0610/0660 as expectations of a Malaysian interest rate increase supported the currency. It also rose against the yen, euro and pound.
Bank Negara Malaysia’s Monetary Policy Committee was scheduled to meet for the sixth and final time in 2026. Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, told Bernama he anticipated a 25-basis-point rise in the overnight policy rate to normalise monetary policy, with economic growth continuing to exceed this year’s target.
He also linked the currency’s advance to greater appetite for risk following the US midterm elections. Mohd Afzanizam expected further ringgit gains and said the exchange rate could test RM4.05 per US dollar.
The yen exchange rate improved from 2.5636/5669 to 2.5628/5677. The euro moved from 4.5723/5779 to 4.5601/5686, while sterling shifted from 5.4783/4850 to 5.4696/4797.
Performance against regional currencies varied. The ringgit rose to 3.1734/1798 per Singapore dollar from 3.1771/1813, and to 223.4/223.8 against Indonesia’s rupiah from 223.5/223.8. It slipped to 12.0746/1037 against Thailand’s baht from 12.0673/0868. Trading against the Philippine peso remained unchanged at 6.39/6.40.
