The ringgit opened mixed against major and ASEAN currencies on Monday as investors assessed the Bank of Japan’s (BOJ) latest rate hike and its implications for global interest rates.
Against the US dollar, the local note eased to 4.0810/0865 at 8am from Friday’s close of 4.0795/0840.
The BOJ raised its policy rate by 25 basis points to 1.25% on Friday, taking borrowing costs to their highest level in 31 years and marking its first rate increase since June.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the move had raised concerns over the unwinding of the yen carry trade, while higher crude oil prices could keep inflation elevated.
“In addition, higher crude oil prices could mean that inflation would remain elevated.
“This would provide the US Federal Reserve with a reason to continue raising interest rates by another 25 basis points later this year,” he told Bernama.
Mohd Afzanizam said Malaysia’s economy remained resilient, with growth reaching 5.2% last year and gross domestic product expanding 5.7% in the first half of 2026.
“This would make normalising the overnight policy rate back to 3.00 per cent the right decision.
“Plus, Bank Negara Malaysia would be seen building up its policy buffer against potential headwinds in the future. Hence, the ringgit could be well supported and could stay in a narrow range today,” he said.
Against major currencies, the ringgit edged up against the euro to 4.6846/6909 from 4.6849/6901 previously.
However, it weakened against the Japanese yen to 2.5990/6027 from 2.5829/5860 and eased against the British pound to 5.4641/4714 from 5.4543/4603.
The ringgit also traded mixed against ASEAN currencies.
It slipped against the Singapore dollar to 3.1980/2026 from 3.1933/1971 and weakened against the Indonesian rupiah to 229.8/230.2 from 229.7/230.0.
The local currency strengthened against the Thai baht to 12.2369/2585 from 12.2383/2562 while remaining unchanged against the Philippine peso at 6.50/6.51.
