“The recent ringgit movements are primarily driven by external factors, and not reflective of the current domestic economic performance and prospects,” it said in a statement today announcing its decision to maintain the overnight policy rate (OPR) at 3%.

“As the risk of heightened volatility in the global financial and foreign exchange markets remains, BNM will continue to ensure sufficient liquidity to support the orderly functioning of the domestic foreign exchange market,” it said.

However, BNM did not specify what these external factors were.

The central bank also said financial institutions continue to operate with strong capital and liquidity buffers, with domestic financial conditions remaining conducive to sustain credit growth.

The ringgit recorded a new daily low against the Singapore dollar yesterday as the latter strengthened amid the rise of the US dollar.

The ringgit is currently trading at 3.5351 to the Singapore dollar. The last recorded daily low was on Dec 13 at 3.5328.

The local currency has also weakened against the greenback recently, and is within touching distance of its all-time low.

The ringgit hit its then all-time low of RM4.7250 to the US dollar on Jan 7, 1998, and this stood for almost a quarter century until Nov 4, 2022, when the local note fell to 4.7460 to the dollar.

At 4.30pm, the ringgit was trading at 4.7340 to the dollar.