The ringgit opened slightly higher against the US dollar on Thursday as investors awaited the tabling of Budget 2027, with markets looking for clues on the government’s fiscal position.
At 8am, the ringgit edged up to RM4.0845/4.0895 against the US dollar, compared with RM4.0850/4.0895 at Wednesday’s close, according to Bernama.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the ringgit strengthened despite a firmer US dollar following the release of minutes from the US Federal Open Market Committee (FOMC) meeting. The US Dollar Index rose 0.40% to 102.242 points.
Afzanizam said the ringgit remained range-bound as markets awaited Budget 2027, particularly for indications on the country’s fiscal deficit. He also highlighted energy price shocks, which are expected to put pressure on the government’s 3.5% of GDP fiscal-deficit target for 2026.
Against other major currencies, the ringgit weakened against the euro, with the pair moving to RM4.5746/4.5802 from RM4.5740/4.5790 previously. It also weakened against the Japanese yen to RM2.5833/2.5867 from RM2.5797/2.5827. However, the local currency strengthened against the British pound, improving to RM5.3968/5.4035 from RM5.4049/5.4108.
The ringgit was mixed against regional currencies. It strengthened slightly against the Singapore dollar to RM3.1913/3.1954 from RM3.1919/3.1957, but weakened against the Thai baht to RM12.1422/12.1646 from RM12.1217/12.1386.
The local currency was unchanged against the Philippine peso at RM6.51/6.52 and the Indonesian rupiah at RM228.3/228.7.
With Budget 2027 due to be tabled, investors are expected to pay close attention to the government’s fiscal consolidation plans and measures addressing rising energy-related costs. The ringgit’s reaction could depend on how the budget affects expectations for Malaysia’s fiscal position and broader economic outlook.
