The ringgit opened higher against the US dollar and other major currencies earlier this week in anticipation of Bank Negara Malaysia's (BNM) decision on the overnight policy rate (OPR) on March 7.
At exactly 9am this morning, the ringgit strengthened at 4.7230 against the US dollar from where it closed at 4.7440 last Friday.
Bank Muamalat Malaysia Bhd Chief Economist Mohd Afzanizam Abdul Rashid said the overnight policy rate (OPR) is likely to remain at 3.0% and the most important thing is the Monetary Policy Committee's (MPC) latest assessment of the economic situation.
Among the important agenda is China's National People's Congress (NPC) this week as the market wants to see the country's macro targets such as GDP, inflation and fiscal deficit for 2024.
He also said that if their policy makers want to provide a stimulus in the economy, it will have a positive impact on the yuan and the ringgit due to the positive correlation of the two currencies.
Meanwhile, the ringgit traded higher against a group of major currencies.
The local currency rose against the British pound to 5.9812/9875 from 5.9926/9977 last Friday, strengthened against the euro to 5.1221/1275 from 5.1330/1373 last week, and improved against the Japanese yen to 3.1489/1524 from 3.1492/1521 previously.
At the same time, the ringgit also traded mostly higher than other Asean currencies.
It was weaker against the Thai baht at 13.2042/2241 from Friday's close of 3.1928/2120, but rose against the Singapore dollar at 3.5154/5194 from 3.5229/5264 last week, strengthened against the Indonesian rupiah 300.7/301.1 from 302.1/302.4 and rose against the Philippine peso at 8.43/8.44 from the previous 8.47/8.48.
