Ringgit edges higher against US dollar ahead of Budget 2027
An economist said markets were watching the fiscal deficit outlook as energy price shocks were expected to affect the 2026 target.
The ringgit began trading on Oct 8 at 4.0845/0895 to the US dollar at 8 am, slightly firmer than the previous close of 4.0850/0895, as markets looked ahead to the tabling of Budget 2027.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the currency remained range-bound while investors sought indications of the fiscal deficit direction. Energy price shocks were expected to affect the 2026 deficit target of 3.5 per cent of gross domestic product, he told Bernama.
He said the ringgit's gain came despite US dollar strength following the publication of Federal Open Market Committee (FOMC) meeting minutes. The US Dollar Index (DXY) rose to 102.242 points, an increase of 0.40 per cent.
Among major currencies, the euro rate moved to 4.5746/5802 from 4.5740/5790 as the ringgit eased. It also weakened to 2.5833/5867 versus the Japanese yen, compared with 2.5797/5827 previously, but gained against the British pound, reaching 5.3968/4035 from 5.4049/4108.
Regional trading was mixed. The ringgit firmed to 3.1913/1954 versus the Singapore dollar from 3.1919/1957, while its Thai baht rate weakened to 12.1422/1646 from 12.1217/1386. Rates for the Philippine peso and Indonesian rupiah held steady at 6.51/6.52 and 228.3/228.7 respectively.
