Ringgit expected to strengthen next week amid more cues from 2027 Budget
KUALA LUMPUR: The ringgit is expected to strengthen against the US dollar next week, trading within the RM4.07 to RM4.08 range, as markets digest the 2027 Budget announcements for further cues on the country’s economic outlook.
According to the 2027 Budget announcements, the ringgit is anticipated to strengthen against the US dollar next week, fluctuating between RM4.07 and RM4.08. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that market focus would remain on the 2027 Budget, with economists and analysts expected to analyze the details and implications in the coming days.
The budget includes measures such as a tax cut for the M40 income group and guarantees for SMEs through institutions like Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Credit Guarantee Corporation (CGC). These measures aim to maintain business vibrancy. Prime Minister Datuk Seri Anwar Ibrahim revealed during the 2027 Budget that the individual tax relief limit has been raised to RM12,000 from RM9,000, benefiting the middle-income group.
Additionally, SJPP and CGC will provide up to RM32 billion in financing guarantees next year. However, concerns over external factors, particularly US interest rates, are expected to be key concerns for market players. The ringgit showed mixed performance against a basket of other major currencies during the week, strengthening against the euro and Japanese yen but depreciating against the British pound.
It also traded mostly higher against Asean currencies, including the Singapore dollar, Indonesian rupiah, and Philippine peso, while weakening against the Thai baht.
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