Ringgit ends higher ahead of Bank Negara meet

, Jan 19 —The ringgit advanced 180 pips to an 18-month high today as traders pricing in local interest rate hike probability next week.

At 6pm, the local note finished at 3.9360/9400 against the greenback, the level last seen in July 2016, from 3.9540/9570 on Thursday.

A dealer said players were cautious ahead of the ’s Monetary Policy Committee (MPC) meeting next week which may decide to raise the Overnight Policy Rate (OPR), which currently stood at 3.00 per cent.

“Market rumours are rife that the may raise the OPR by 25 basis points (bps) to 3.25 per cent after the hawkish shift in the last meeting. Pricing in the hike, that triggered ringgit’s purchase since this morning,” she told Bernama.

Meanwhile, the ringgit traded mixed against a basket of major currencies.

The local note strengthened against the dollar to 2.9820/9869 from Thursday’s 2.9887/9912.

The ringgit, however, depreciated against the yen to 3.5572/5617 from Thursday’s 3.5522/5553, down against the euro to 4.8322/8387 from 4.8290/8339 and slipped against the British pound to 5.4742/4801 from 5.4731/4777 previously. — Bernama

Source: The Malay Mail Online

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