KUALA LUMPUR — The ringgit opened higher against the US dollar and major currencies today, supported by expectations of a possible overnight policy rate (OPR) normalisation ahead of Bank Negara Malaysia’s Monetary Policy Committee (MPC) meeting this Thursday.

At 8 am, the local note was slightly higher at 4.0550/0635 against the greenback from last Friday’s close of 4.0555/0600.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid opined that the MPC members would decide to raise the OPR by 25 basis points (bps).

He said the pre-emptive rate cut in July 2025, which lowered the OPR from three per cent to 2.75 per cent, had served its purpose, as concerns over slower economic growth following the tariff shock had not materialised.

“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 told Bernama.

However, he said market consensus was that the benchmark interest rate would remain unchanged at 2.75 per cent.

On external developments, he said currency markets were expected to remain cautious ahead of the United States midterm elections on Tuesday, particularly amid uncertainties surrounding the conflict in West Asia.