Ringgit ends higher versus greenback ahead of 2027 Budget

KUALA LUMPUR: The Malaysian ringgit closed slightly higher against the US dollar on Tuesday, as investors remained vigilant ahead of the upcoming Budget 2027, which is scheduled for release on Friday, according to an analyst. By 6pm, the ringgit reached 4.0835/4.0880 against the greenback, up from its previous close of 4.0845/4.0890.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid forecasted that the ringgit would likely trade within a narrow range until the Budget 2027 is unveiled. He mentioned that the ringgit maintained its tight range bias throughout the day, fluctuating between RM4.0848 and RM4.0880, while the US Dollar Index (DXY) fell by 0.14% to 102.028 points.

Rashid informed Bernama that despite the DXY's decline, higher US interest rates are anticipated to persistently bolster the dollar's position. By the close, the ringgit showed mixed performance against a selection of major and ASEAN currencies. It strengthened against the Japanese yen, moving from 2.5858/2.5886 to 2.5807/2.5837, but weakened against the euro, dropping from 4.5775/4.5825 to 4.5907/4.5957.

The ringgit also depreciated against the British pound, falling from 5.4022/5.4081 to 5.4066/5.4125. Compared to its ASEAN counterparts, the ringgit appreciated against the Philippine peso, up from 6.52/6.53 to 6.50/6.51, but declined against the Singapore dollar, moving from 3.1905/3.1943 to 3.1935/3.1975. Against the Indonesian rupiah, the local currency edged lower, trading at 228.1/228.4 compared to 227.9/228.3 previously, while it weakened against the Thai baht, moving from 12.1234/12.1411 to 12.1424/12.1609.