Ringgit Outlook Remains Cautious as Markets Await Bank Negara’s November 5 OPR Decision

The ringgit is expected to trade within a narrow range against the US dollar next week as investors await Bank Negara Malaysia’s (BNM) Overnight Policy Rate (OPR) decision scheduled for November 5. Bank Muamalat Malaysia chief economist Dr Mohd Afzanizam Abdul Rashid said a possible interest rate increase could provide support for the local currency, particularly given Malaysia’s stronger-than-expected economic growth. He expects the dollar-ringgit exchange rate to move between RM4.05 and RM4.07, while market participants assess the central bank’s next policy move.

Global Uncertainty and Interest Rate Expectations Shape Currency Movement

Kenanga Investment Bank expects the ringgit to remain volatile within a wider range of RM4.04 to RM4.08. It warned that an escalation of tensions in West Asia could push oil prices and US Treasury yields higher, potentially strengthening demand for the US dollar. The bank maintained its year-end ringgit target of RM4.00 against the greenback.

Despite the cautious outlook, the ringgit recorded weekly gains, strengthening to 4.0555/0600 against the US dollar on Friday from 4.0835/0875 a week earlier. It also appreciated against several major and regional currencies, including the Singapore dollar, Japanese yen and euro. Investors will now watch BNM’s OPR announcement closely for signals on monetary policy and the ringgit’s direction.

The ringgit is expected to remain within a narrow trading range as investors await Bank Negara Malaysia’s OPR announcement on November 5.

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