KUALA LUMPUR: The ringgit opened marginally higher against the US dollar on Friday as investors remained cautious ahead of Budget 2027, with attention turning to the government’s fiscal outlook.
At 8am, the ringgit edged up to RM4.0880/4.0945 against the US dollar, compared with Thursday’s close of RM4.0890/4.0940, according to Bernama.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said markets would focus on the government’s fiscal position, particularly whether it could maintain fiscal discipline and keep the budget deficit on a downward trajectory.
He said this was important amid political considerations surrounding the budget, with state elections approaching and a general election expected in the future. Maintaining fiscal discipline would remain key to supporting the ringgit, he added.
Against other major currencies, the ringgit weakened against the euro to RM4.5839/4.5912, compared with RM4.5719/4.5775 at Thursday’s close. It also slipped against the Japanese yen to RM2.5862/2.5905 from RM2.5834/2.5867, and eased against the British pound to RM5.4076/5.4162 from RM5.3930/5.3996.
Against regional currencies, the ringgit strengthened against the Singapore dollar to RM3.1918/3.1971 from RM3.1893/3.1934 previously. However, it weakened against the Thai baht to RM12.1468/12.1715 from RM12.1371/12.1563.
The ringgit was unchanged against the Philippine peso at RM6.50/6.51 and the Indonesian rupiah at RM228.2/228.6.
Investors will continue to assess the government’s fiscal plans and the outlook for Malaysia’s economy as Budget 2027 approaches. The ringgit’s direction will depend partly on how the budget addresses fiscal sustainability and investor confidence.
