Ringgit ends higher against US dollar on Budget 2027 fiscal discipline

KUALA LUMPUR: On Friday, the Malaysian ringgit ended higher against the US dollar, buoyed by the government’s pledge to implement fiscal consolidation as outlined in Budget 2027, according to an analyst. By 6pm, the ringgit reached 4.0830/4.0875 against the US dollar, marking an improvement from Thursday’s close of 4.0890/4.0940.

Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, predicted that Malaysia's fiscal deficit will narrow to 3.3% of gross domestic product (GDP) in the coming year, down from an estimated 3.6% in 2026. The ringgit traded unevenly against a selection of major and Asean currencies. It gained against the Japanese yen, climbing to 2.5791/2.5821 from 2.5834/2.5867 earlier, but fell against the British pound, dropping to 5.4063/5.4123 from 5.3930/5.3996, and weakened against the euro, falling to 4.5807/4.5858 from 4.5719/4.5775.

In comparison to its regional counterparts, the ringgit increased against the Indonesian rupiah to 228.1/228.4 from 228.2/228.6, but stayed the same against the Philippine peso at 6.50/6.51. It decreased against the Singapore dollar, moving from 3.1893/3.1934 to 3.1896/3.1934, and slipped against the Thai baht, moving from 12.1371/12.1563 to 12.1735/12.1909.