KUALA LUMPUR: The coordinated initiatives by the government and Bank Negara Malaysia (BNM) with the government-linked companies and government-linked investment companies as well as corporate engagements have continued to cushion the pressure on the ringgit.
The central bank said the ringgit continues to be driven by external factors, namely expectations of major economies' monetary policy paths and ongoing geopolitical tensions.
"BNM will continue to manage risks arising from heightened financial market volatility. "Over the medium term, domestic structural reforms willprovide more enduring support to the ringgit," it said in its monetary policy statement which kept the overnight policy rate at 3 per cent.
As at noon the ringgit appreciated to 4.6850 against the dollar on optimism that US rate cuts will start in September.