Ringgit opens slightly higher as markets eye Budget 2027

The Malaysian ringgit opened marginally higher against the US dollar on Thursday, as markets eagerly awaited the publication of the Budget 2027 for insights into the nation's fiscal deficit. At 8am, the currency traded at 4.0845/4.0895 against the greenback, a slight improvement from Wednesday's closing rate of 4.0850/4.0895. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid attributed the ringgit's strengthening to the release of minutes from the Federal Open Market Committee (FOMC) meeting, which caused the US Dollar Index (DXY) to rise by 0.40% to 102.242 points.

However, the local currency remained range-bound as investors kept an eye on the Budget 2027 for clues on the fiscal deficit, especially considering the energy price shocks that could impact the 3.5% target for gross domestic product growth in 2026. The ringgit's performance against major currencies was mixed, weakening against the euro, Japanese yen, and Thai baht, but strengthening against the British pound.

Against regional currencies, the ringgit showed a mixed trend, with slight improvements against the Singapore dollar and unchanged against the Philippine peso and Indonesian rupiah.