KUALA LUMPUR: The ringgit ended firmer today on the back of the overnight policy rate cut yesterday by Bank Negara Malaysia (BNM), with local financial stocks reaping the benefit.
The local note gained 0.63% or 265 basis points to 4.1780/1830 against the greenback from Tuesday’s close of 4.2045/2085.
Ambank Research in a note said the OPR cut may provide some short-term positive impetus for the ringgit to appreciate against the greenback by around 0.1% to 0.2%.
Yesterday, BNM reduced the OPR by 25 basis points to 2.5%.
In addition, the stronger ringgit was also spurred by positive market sentiment and convincing messages from newly-appointed Prime Minister Tan Sri Muhyiddin Yassin.
After a week of political turmoil, the market seems convinced by the premier’s pledge to bring the country back on track with a clean, honest and corruption-free government.
The ringgit was also traded higher against other major currencies.
It rose against the Singapore dollar to 3.0179/0220 from yesterday’s close of 3.0194/0233 and increased versus the Japanese yen to 3.8887/8944 from 3.8934/8982.
The local unit also appreciated against the British pound to 5.3403/3484 from 5.3725/3793 and firmed vis-a-vis the euro to 4.6606/6678 from 4.6775/6836 previously. – Bernama