Ringgit treads water against dollar after BOJ rate decision

The ringgit opened with a softer bias in early trading Monday, depreciating marginally to 4.0810/4.0865 against the US dollar, compared with the previous week's close of 4.0795/4.0840. The movement reflected broader regional currency shifts triggered by the Bank of Japan's decision to raise benchmark interest rates, a development that typically strengthens the yen and ripples through regional foreign exchange markets. The BOJ's tightening stance supported demand for the Japanese currency as investors reassess relative yield differentials across Asia. Against other major currencies and ASEAN counterparts, the ringgit exhibited uneven momentum, with trading volumes expected to remain moderate given the early week dynamics. Market participants were monitoring how regional central banks might respond to the BOJ's actions, with implications for the ringgit's trajectory through the week. Analysts noted that the currency's movement reflected typical risk-off sentiment, though fundamental support from Malaysia's economic data remained intact. Further regional economic developments and global risk sentiment were expected to guide the ringgit's performance in coming sessions.