KUALA LUMPUR, May 6 — The ringgit continued its upward momentum, closing mostly higher against most major currencies and regional peers on improved sentiment as investors await the decision on the Overnight Policy Rate (OPR).

Bank Negara Malaysia (BNM) will hold its third Monetary Policy Committee (MPC) meeting tomorrow ahead of the announcement.

The ringgit also rose against the US dollar at 6 pm today to 3.9230/9275 from 3.9540/9575 on Tuesday’s close.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said market focus would be on the BNM’s MPC meeting, in which economists widely believe the OPR remained unchanged at 2.75 per cent.

“The key highlights will be the latest assessment on inflation and growth prospects of Malaysia.

“For now, ringgit seems to be in a sweet spot as the macro numbers have been encouraging while the government remain mindful in their response to the current economic shocks,” he told Bernama.

Mohd Afzanizam also said the ringgit appreciated against the US Dollar as crude oil prices fell, following President Donald Trump’s announcement regarding the suspension of Project Freedom, amid Washington’s hopes for a resolution with Iran.

“Additionally, the US Dollar Index (DXY) declined 0.38 per cent to 98.068 points, while risk appetite improved quite significantly too, with benchmark equities rising in the Asian region,” he said.

Meanwhile, SPI Asset Management managing partner Stephen Innes said the local note resilience was supported by improving geopolitical sentiment, which helped lift broader risk appetite across Asian markets.

He said market sentiment improved after Trump signalled progress towards a potential “final agreement” with Iran, reinforcing the market’s belief that tensions in West Asia may be shifting.

“That development added fresh momentum to an already constructive backdrop for risk assets, particularly as global technology shares continued to rally and support regional equity inflows,” he said.

At the close, the ringgit traded mostly higher against a basket of major currencies.

It strengthened against the euro to 4.6189/6242 from 4.6288/6329 at Tuesday’s close, rose versus the British pound to 5.3443/3504 from 5.3622/3670 previously, but inched down against the Japanese yen to 2.5159/5191 from 2.5138/5163 yesterday.

The local currency was also mostly higher against regional peers.

It appreciated against the Singapore dollar to 3.0946/0986 from 3.1013/1042 at Tuesday’s close, gained versus the Indonesian rupiah to 225.6/225.9 from 227.2/227.5 previously, edged up the Philippine peso to 6.39/6.41 from 6.43/6.44 yesterday, but eased versus the Thai baht to 12.1866/2074 from 12.1064/1223. — Bernama