The ringgit opened higher against the US dollar on Monday, supported by the government’s commitment to fiscal discipline following the tabling of Budget 2027 last Friday.
At 8am, the local currency edged up to RM4.0820/4.0880 against the greenback, compared with Friday’s closing rate of RM4.0830/4.0875, according to Bernama.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the government’s plan to narrow the fiscal deficit to 3.3% of gross domestic product (GDP) in 2027, from an estimated 3.6% this year, reflected its commitment to fiscal discipline.
He said the pragmatic approach could help preserve Malaysia’s sovereign credit rating, providing firm support for the ringgit.
However, external uncertainties remain a concern, particularly developments in West Asia and their potential impact on global crude oil prices. Afzanizam said markets would also watch whether the US Federal Reserve considers raising interest rates further this month, adding that the ringgit-US dollar pair was expected to remain within a tight trading range.
Against other major currencies, the ringgit strengthened against the British pound to RM5.4038/5.4117 from RM5.4063/5.4123 at Friday’s close. It also gained against the euro, trading at RM4.5735/4.5802 compared with RM4.5807/4.5858 previously.
However, the local currency weakened against the Japanese yen to RM2.5806/2.5846 from RM2.5791/2.5821 at the previous close.
Against regional currencies, the ringgit edged higher against the Singapore dollar to RM3.1876/3.1928 from RM3.1896/3.1934. It also strengthened against the Thai baht to RM12.1720/12.1957 from RM12.1735/12.1909.
The ringgit gained slightly against the Indonesian rupiah, trading at RM228.0/228.4 compared with RM228.1/228.4 previously, while remaining unchanged against the Philippine peso at RM6.50/6.51.
Investors are expected to continue monitoring the government’s fiscal plans, developments in West Asia and signals from the US Federal Reserve as they assess the ringgit’s near-term direction.
