Ringgit opens marginally higher as Budget 2027 fiscal outlook in focus

KUALA LUMPUR: The Malaysian ringgit opened slightly higher against the US dollar on Friday, as investors remained cautious while evaluating the fiscal outlook ahead of the presentation of the 2027 Budget. At 8am, the ringgit rose to 4.0880/4.0945 against the greenback, from Thursday's close of 4.0890/4.0940. Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, stated that the market would concentrate on the government's fiscal position, anticipating that it would continue to exercise fiscal discipline and reduce the fiscal deficit.

This is crucial, considering the political climate surrounding the Budget, with state elections approaching and a general election on the horizon. Rashid emphasized that maintaining fiscal discipline would be vital for the ringgit's strength, as it would ensure that the economic fundamentals support the Malaysian currency. The ringgit traded at weaker levels against major currencies, falling against the euro, Japanese yen, and British pound, while trading mixed against regional currencies, strengthening against the Singapore dollar but weakening against the Thai baht.