Ringgit gains against US dollar as Budget 2027 underscores fiscal discipline

KUALA LUMPUR, Oct 9 — The Malaysian ringgit strengthened against the US dollar today, according to an analyst, due to the government's commitment to fiscal consolidation outlined in Budget 2027. By 6pm, the ringgit reached 4.0830/0875 against the US dollar, up from yesterday's closing rate of 4.0890/0940. Dr Mohd Afzanizam Abdul Rashid, the chief economist at Bank Muamalat Malaysia Bhd, explained that the expected narrowing of Malaysia's fiscal deficit to 3.3% of gross domestic product (GDP) in 2027 from 3.6% in 2026 indicates the government's dedication to fiscal discipline.

This confidence-building measure should aid traders and investors in their dealings with the ringgit, he stated to Bernama. Throughout the day, the ringgit fluctuated against various currencies. It appreciated against the Japanese yen, British pound, and Indonesian rupiah, but weakened against the euro, British pound, Singapore dollar, and Thai baht.