The ringgit opened slightly higher against the US dollar on Friday as investors remained cautious ahead of Budget 2027, with the government’s fiscal outlook expected to be a key focus.
At 8am, the local currency rose to 4.0880/0945 against the US dollar from Thursday’s close of 4.0890/0940.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said markets would be watching whether the government maintained fiscal discipline and continued to reduce the fiscal deficit.
He said this would be particularly important given political considerations surrounding the Budget, with state elections approaching and a general election expected in the future.
“Maintaining fiscal discipline will remain a key factor in strengthening the ringgit, as it will ensure that economic fundamentals continue to support the Malaysian currency,” he told Bernama.
Against other major currencies, the ringgit weakened at the open, slipping to 4.5839/5912 against the euro from 4.5719/5775 at Thursday’s close. It also fell to 2.5862/5905 against the Japanese yen from 2.5834/5867 and declined to 5.4076/4162 against the British pound from 5.3930/3996.
The ringgit traded mixed against regional currencies, weakening to 3.1918/1971 against the Singapore dollar from 3.1893/1934 and strengthening against the Thai baht to 12.1468/1715 from 12.1371/1563.
It was unchanged against the Philippine peso at 6.50/6.51 and the Indonesian rupiah at 228.2/228.6.
