Ringgit Strengthens Slightly as Investors Await Budget 2027 Directions

KUALA LUMPUR – The Malaysian ringgit opened slightly higher against the US dollar on Thursday, with markets focused on the tabling of Budget 2027 for clues on the country’s fiscal deficit.

At 8:00 a.m., the ringgit was traded at 4.0845/0895 against the greenback, compared to Wednesday’s close of 4.0850/0895.

Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the ringgit strengthened despite a stronger US dollar following the release of the Federal Open Market Committee (FOMC) meeting minutes. The US Dollar Index (DXY) rose 0.40% to 102.242 points.

“The ringgit remains range-bound as markets await Budget 2027 for clues on the fiscal deficit, particularly amid energy price shocks that are expected to affect the 3.5% gross domestic product target for 2026,” he told Bernama.

The ringgit traded mostly lower against major currencies at the opening.

It marginally eased against the euro to 4.5746/5802 from 4.5740/5790 and weakened against the Japanese yen to 2.5833/5867 from 2.5797/5827. However, it strengthened against the British pound to 5.3968/4035 from 5.4049/4108.

Against regional currencies, the ringgit traded mixed.

It edged up against the Singapore dollar to 3.1913/1954 from 3.1919/1957 at Wednesday’s close, but weakened against the Thai baht to 12.1422/1646 from 12.1217/1386.

The local note was unchanged against the Philippine peso at 6.51/6.52 and the Indonesian rupiah at 228.3/228.7.

– Bernama

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