Ringgit gains against US dollar as Budget 2027 underscores fiscal discipline

KUALA LUMPUR, Oct 9 — The ringgit surged against the US dollar at 6pm today, bolstered by the government's pledge to fiscal consolidation in Budget 2027, according to an analyst. At the close, the ringgit reached 4.0830/0875 against the US dollar, up from yesterday's 4.0890/0940. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid stated that Malaysia's fiscal deficit is projected to decrease to 3.3% of GDP next year, down from 3.6% in 2026.

Dr Rashid highlighted that the anticipated reduction in the fiscal deficit indicates the government's commitment to fiscal discipline, which could strengthen traders' and investors' confidence in the ringgit. By the close, the ringgit fluctuated against a selection of major and ASEAN currencies, rising against the Japanese yen, falling against the British pound and euro, and experiencing minor changes against its ASEAN counterparts.