BNM to ensure orderly functioning of money, forex markets

In a statement today, BNM said, the ringgit exchange rate was being affected by global factors that were affecting many emerging and commodity-producing economies.

The central bank said the global factors included the weaker commodity prices, the strength of the US dollar and the uncertainty in the global financial markets.

It said the ringgit exchange rate would reflect the underlying fundamentals of the economy when the external and domestic uncertainties receded.

"While global and domestic developments have continued to affect the ringgit exchange rate and domestic financial markets, overall domestic liquidity conditions remain stable.

"The financial system remains sound, with healthy growth in financing. Financial intermediation has therefore continued to support the economy," it said.

The ringgit finished stronger against the US dollar today, spurred by commercial demand for the local unit.

At 5pm, the ringgit was quoted at 4.3150/3200 against the greenback from 4.3340/3400 on Thursday.

At its Monetary Policy Committee meeting earlier, BNM kept the Overnight Policy Rate (OPR) unchanged at 3.25 percent as the current stance of monetary policy remained accommodative and supportive of economic activity.