Source : Bernama
KUALA LUMPUR, November 2, 2026 – The ringgit opened higher against the US dollar and other major currencies on Monday, supported by expectations that Bank Negara Malaysia (BNM) could begin normalising the overnight policy rate (OPR) when its Monetary Policy Committee (MPC) meets this Thursday, as reported by Bernama.
At 8 am, the local currency stood slightly firmer at 4.0550/0635 against the greenback, compared with last Friday’s close of 4.0555/0600. The opening move followed a strong week for the ringgit, which on a Friday-to-Friday basis climbed to 4.0555/0600 from 4.0835/0875 a week earlier.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama he expected MPC members to raise the OPR by 25 basis points. He said the pre-emptive cut in July 2025, which lowered the benchmark rate from three per cent to 2.75 per cent, had served its purpose because fears of slower growth following the tariff shock had not come to pass.
“In 2025, the gross domestic product (GDP) grew by 5.2 per cent while in the first nine months of 2026, GDP growth accelerated to 5.5 per cent. On that note, the case for OPR normalisation is clear as the fears of slower growth following the tariff shock have not materialised. As such, this could provide support for the ringgit today,” he said.
However, he acknowledged that the market consensus was for the benchmark rate to stay unchanged at 2.75 per cent. The Star reported that a Bloomberg survey found eight of nine economists expect BNM to hold the OPR at its final MPC meeting of the year, while one forecasts a 25-basis-point hike to three per cent. CIMB Research and Kenanga Research both expect rates to be kept steady, while UOB Global Economics & Markets Research has called for a hike, citing a shift in policy guidance in September and stronger-than-expected third-quarter growth.
Beyond the rate decision, Dr Mohd Afzanizam said currency markets were likely to stay cautious ahead of the United States midterm elections on Tuesday, particularly amid uncertainty over the conflict in West Asia. Kenanga Investment Bank Bhd said in a research note over the weekend that it saw the ringgit moving within a range of RM4.04 to RM4.08 this week, with its year-end target of RM4.00 still within reach.
Against other major currencies, the ringgit rose versus the British pound to 5.4276/4390 from 5.4461/4522 at Friday’s close, gained against the euro to 4.5238/5332 from 4.5413/5464, and strengthened against the Japanese yen to 2.5715/5771 from 2.5782/5812.
The local note was mixed against its ASEAN neighbours. It climbed against the Singapore dollar to 3.1724/1793 from 3.1753/1791 and advanced against the Thai baht to 12.0024/0400 from 12.0373/0561. It was flat against the Indonesian rupiah at 223.4/224.0 and the Philippine peso at 6.36/6.38 compared with Friday’s close.
With September headline inflation at 1.8 per cent, analysts at CIMB Research said investors would be watching BNM’s assessment of how Budget 2027 measures and higher energy prices could affect growth and inflation going into 2027. Whatever the outcome on Thursday, the central bank’s policy statement is expected to be closely read for signals on the direction of interest rates next year.
Source: Bernama
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