Ringgit opens marginally higher against US dollar as 2027 Budget fiscal outlook in focus

KUALA LUMPUR: On Friday, the ringgit began the day slightly higher against the US dollar, as investors maintained a cautious stance while they awaited the announcement of the 2027 Budget. At 8am, the currency was trading at 4.0880/0945 against the greenback, up from Thursday's closing rate of 4.0890/0940. Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, stated that the market's attention would be primarily on the government's fiscal position, expecting it to adhere to fiscal discipline and gradually reduce the fiscal deficit.

This concern was heightened due to the impending state elections and the eventual general election, which could influence the government's budgetary decisions. Rashid emphasized that preserving fiscal discipline would remain crucial for the ringgit's strength, as it would ensure that the country's economic fundamentals support the value of the Malaysian currency.

Throughout the trading session, the ringgit saw a decline against major currencies, weakening against the euro, Japanese yen, and British pound. However, it strengthened against the Singapore dollar but weakened against the Thai baht and remained unchanged against the Philippine peso and Indonesian rupiah.