Ringgit edges up against US dollar ahead of Budget 2027
The currency opened lower against the euro, yen and pound, while an economist said fiscal discipline would remain important to its strength.
The ringgit recorded a small opening gain against the US dollar on Oct 9 as markets cautiously assessed the fiscal outlook before Budget 2027 is tabled. Its 8 am quotation was 4.0880/0945, compared with the previous closing rate of 4.0890/0940.
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, told Bernama that the government's fiscal position would draw market attention. He said expectations were for continued fiscal discipline and a further downward path for the fiscal deficit.
He linked the importance of fiscal restraint to the political considerations around the Budget, citing approaching state elections and an expected future general election. In his view, fiscal discipline would help underpin economic fundamentals that support the ringgit.
The opening moves against other major currencies were weaker: the euro rate stood at 4.5839/5912 versus 4.5719/5775 previously; the Japanese yen at 2.5862/5905 versus 2.5834/5867; and the British pound at 5.4076/4162 versus 5.3930/3996.
Regional quotations showed the Singapore dollar at 3.1918/1971, compared with 3.1893/1934 at the previous close. The ringgit weakened against the Thai baht to 12.1468/1715 from 12.1371/1563. Rates for the Philippine peso and Indonesian rupiah held at 6.50/6.51 and 228.2/228.6 respectively.
