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.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market attention would remain on 2027 Budget, with economists and analysts expected to examine the details and implications in the coming days.

"There are some measures, such as a tax cut for the M40 income group and more measures on the guarantees for SMEs via institutions such as Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Credit Guarantee Corporation (CGC). All these measures are meant to ensure that our businesses will remain vibrant," he told Bernama.

During the 2027 Budget tabled in the Dewan Rakyat, Prime Minister Datuk Seri Anwar Ibrahim revealed that the individual tax relief limit has been increased to RM12,000 from RM9,000, benefiting the middle-income group (M40).

Anwar also announced that Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Credit Guarantee Corporation Malaysia Bhd (CGC) would provide up to RM32 billion in financing guarantees next year.

However, he said concerns over the external front, especially on interest rates in the US, will be among the key concerns for market players.

Meanwhile, on a Friday-to-Friday basis, the ringgit eased against the greenback to 4.0830/0875 from 4.0820/0870 a week earlier.

The local currency traded mixed against a basket of other major currencies during the week.

It strengthened to 4.5807/5858 versus the euro from 4.5927/5983 on the previous Friday, and rose vis-a-vis the Japanese yen to 2.5791/5821 from 2.5906/5941. However, it depreciated against the British pound to 5.4063/4123 from 5.3927/3993 a week earlier.

The ringgit traded mostly higher against Asean currencies.

It climbed versus the Singapore dollar to 3.1896/1934 from 3.1908/1952 a week earlier and inched up against the Indonesian rupiah to 228.1/228.4 from 228.2/228.6.

The local note went up against the Philippine peso to 6.50/6.51 from 6.52/6.54, but it depreciated vis-a-vis the Thai baht to 12.1735/1909 from 12.1579/1778 at the end of last week.