KUALA LUMPUR — The ringgit extended its gains against the US dollar and other major currencies on Thursday, closing firmer following Bank Negara Malaysia’s (BNM) decision to maintain the Overnight Policy Rate (OPR) at 2.75 per cent.

The decision was made during the central bank’s final Monetary Policy Committee meeting of the year today.

At 6pm, the local note rose to 4.0445/0490 versus the greenback from Wednesday’s close of 4.0610/0660.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the decision to keep the OPR unchanged at 2.75 per cent was in line with estimates.

He said BNM is seen to be positive about the current state of the economy, with the 2026 gross domestic product (GDP) growth expected to settle above 5.0 per cent.

“At the same time, the balance of risks are seen to be stable although concerns on higher inflation going forward warrant a cautious stance.

“On that note, the case for a 25-basis point hike in OPR during 2027 should not be ruled out and perhaps it could happen in the first quarter of 2027. As such, this could provide further support to the ringgit,” he told Bernama.

Mohd Afzanizam also said the US midterm elections were a key driver of market sentiment today as a Democrats-controlled Congress could mean more scrutiny on President Donald Trump administration’s policies.

“Consequently, Brent crude oil fell below US$100 (RM404.57) per barrel to US$95.12 per barrel currently, while the US Dollar Index (DXY) fell by 0.14 per cent to 101.423 points,” he said.

Meanwhile, SPI Asset Management managing partner Stephen Innes said market sentiment was also supported by a decline in US Treasury yields following the sharp overnight drop in crude oil prices, as the geopolitical risk premium was effectively stripped from the oil market.