KUALA LUMPUR, Sept 9 — The ringgit retreated against the stronger US dollar this morning, ahead of Bank Negara Malaysia’s (BNM) decision on the Overnight Policy Rate (OPR) today.
At 9.05am, the local note stood at 4.1525/1550 against the greenback from 4.1495/1530 recorded at yesterday’s closing.
The central bank’s Monetary Policy Committee will convene to decide on the OPR today, which would provide clues on the current economic situation and the recovery outlook for Malaysia, an analyst said.
Earlier on, OCBC Bank said that the slashing of Malaysia’s 2021 gross domestic product (GDP) growth outlook might be a prelude to a potential cut in the OPR.
Last month, BNM Governor Datuk Nor Shamsiah Mohd Yunus said Malaysia’s projected economic growth for 2021 has been revised to be between three and four per cent, lower than the earlier projection of between six and seven per cent.
She attributed the lower growth projection to the re-imposition of the nationwide COVID-19 containment measures following the spike in the local infection rate.
Meanwhile, the US dollar’s safe-haven stature helped the greenback to hold on to its gains despite emerging signs that the United States (US) economic growth is being hampered by a resurgence in coronavirus cases, as well as other challenges.
The US Federal Reserve’s latest survey of the nation’s business conditions showed that the country’s economic activities had “downshifted” in July and August, following rising concerns over Covid-19 cases, supply chain problems and labor shortages.
Back home, the ringgit was traded lower against a basket of major currencies.
The local note stood unchanged versus the Singapore dollar at 3.0828/0849 from 3.0828/0857 on Wednesday but declined vis-a-vis the euro to 4.9058/9087 from 4.9026/9068 previously.
It had also depreciated against the Japanese yen to 3.7681/7708 from 3.7632/7672 and dropped against the British pound at 5.7147/7181 from 5.7082/7129 yesterday.
— Bernama
