Selangor Journal
Picture shown for illustration purposes only. — File Picture SELANGORKINI

Ringgit ends marginally higher against US dollar

KUALA LUMPUR, Sept 9 — The ringgit closed slightly higher against the US dollar on Thursday following Bank Negara Malaysia’s (BNM) decision to keep the overnight policy rate (OPR) unchanged at 1.75 per cent, says an economist.

At 6pm, the local note stood at 4.1470/1500 against the greenback from 4.1495/1530 recorded at yesterday’s closing.

Commenting on the BNM’s stance, Bank Islam chief economist Dr Mohd Afzanizam Abdul Rashid said the balance of risks are still tilted to the downside.

He noted that at the same time, the central bank had also acknowledged that the rapidly increasing Covid-19 vaccination rate would enable the smooth resumption of economic activities, leading to a better growth trajectory next year.

“Having said that, the BNM’s future decision will depend on incoming data.

“In that sense, it is quite fluid, considering that the rise in new Covid-19 in many parts of the world are implying that the reopening of the economy could hit speed bumps along the way,” he told Bernama.

Bank Negara Malaysia (BNM) has maintained the Overnight Policy Rate (OPR) at 1.75 per cent at its fifth Monetary Policy Committee (MPC) meeting earlier today.

The MPC considers the monetary policy stance to be appropriate and accommodative.

“In addition, fiscal and financial measures will continue to cushion the economic impact on businesses and households and provide support to economic activities,” it said.

The OPR has remained at 1.75 per cent since July 7, 2020.

Meanwhile, the local note was traded lower against a basket of major currencies at the close.

The local note decreased versus the Singapore dollar to 3.0860/0885 from 3.0828/0857 on Wednesday and fell vis-a-vis the euro to 4.9063/9103 from 4.9026/9068 previously.

It also depreciated against the Japanese yen to 3.7727/7758 from 3.7632/7672 yesterday and weakened against the British pound at 5.7303/7345 from 5.7082/7129 previously.

— Bernama

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