KUALA LUMPUR, 7 May 2026 (The Capital Post) — Malaysia’s ringgit opened higher against the US dollar on Thursday, with analysts expecting the local currency to extend its gains if Bank Negara Malaysia (BNM) maintains the Overnight Policy Rate (OPR) at 2.75%.
At the opening, the ringgit improved to 3.9050/9300 versus the greenback, compared with Wednesday’s closing rate of 3.9230/9275. Investors are closely watching BNM’s Monetary Policy Committee meeting later today for clues on the country’s inflation outlook and economic growth prospects.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said improving global sentiment had boosted demand for emerging market currencies, including the ringgit.
He pointed to easing geopolitical tensions after reports suggested progress in negotiations between the United States and Iran, raising hopes of smoother shipping activity through the Strait of Hormuz.
Global markets also reacted positively overnight, with major US stock indexes climbing while the US Dollar Index weakened and Treasury yields slipped.
Afzanizam said the ringgit could continue strengthening and potentially test the RM3.90 level against the US dollar if BNM leaves the OPR unchanged.
The local currency also traded firmer against several major currencies, including the euro, British pound and Japanese yen.
Against regional peers, the ringgit gained against the Singapore dollar and Thai baht, while remaining broadly steady versus the Indonesian rupiah and Philippine peso. -The Capital Post
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