Ringgit opens slightly higher as markets eye Budget 2027

The ringgit opened slightly higher against the US dollar on Thursday as markets awaited the tabling of Budget 2027 for clues on the direction of the country’s fiscal deficit.

At 8am, the ringgit edged higher to 4.0845/4.0895 against the greenback from Wednesday’s close of 4.0850/4.0895.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said the ringgit strengthened despite a stronger US dollar following the release of minutes from the Federal Open Market Committee (FOMC) meeting, which lifted the US Dollar Index (DXY) 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% of gross domestic product target for 2026,” he added.

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

It marginally eased against the euro to 4.5746/4.5802 from 4.5740/4.5790 and weakened against the Japanese yen to 2.5833/2.5867 from 2.5797/2.5827. However, it strengthened against the British pound to 5.3968/5.4035 from 5.4049/5.4108.

Against regional currencies, the ringgit traded mixed.

It edged up against the Singapore dollar to 3.1913/3.1954 from 3.1919/3.1957 at Wednesday’s close, but weakened against the Thai baht to 12.1422/12.1646 from 12.1217/12.1386.

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