THE ringgit is projected to remain within a narrow trading band of RM4.20 to RM4.22 against the US dollar next week, as investors adopt a cautious stance ahead of Malaysia’s Budget 2026 and amid ongoing uncertainty surrounding the US government shutdown.
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, said market participants will be paying close attention to the federal budget, due to be tabled on 10 October, particularly in terms of total allocation, GDP forecast, and fiscal deficit targets.
“In the past three years, the government has embarked on a fiscal consolidation exercise involving new taxes such as the low-value goods tax and capital gains tax, among others, as well as subsidy rationalisation,” he told Bernama.
“It should be positive for the ringgit, as the government has been consistent in its financial discipline, which can be deemed credit-positive.”
On a weekly basis, the ringgit appreciated against the US dollar, closing at 4.2055/2125 compared to 4.2200/2250 previously. However, the local currency fell against a number of major currencies.
It weakened against the Japanese yen to 2.8537/8586 from 2.8171/8206, declined versus the euro to 4.9360/9442 from 4.9281/9340, and slipped against the British pound to 5.6577/6671 from 5.6345/6412.
Performance was mixed against regional currencies. The ringgit strengthened slightly against the Singapore dollar at 3.2621/2678 from 3.2630/2671, and gained on the Thai baht at 12.9807/13.0084 from 13.0587/1069.
However, it eased against the Philippine peso to 7.26/7.28 from 7.25/7.27 and slipped versus the Indonesian rupiah to 253.9/254.4 from 252.1/252.5 previously.
Meanwhile, Bernama-Xinhua reported that the US dollar slipped in late trading on Friday, with the dollar index easing 0.13 per cent to 97.723 at 3pm local time (1900 GMT).
The greenback posted losses against several major currencies, including the euro and the British pound, amid broader market recalibrations.
The euro rose to US$1.1740 from US$1.1721 in the previous session, while the pound strengthened to US$1.3480 from US$1.3447.
The dollar, however, edged higher against the Japanese yen, buying 147.50 yen compared to 147.21 yen the day before.
Elsewhere, the dollar weakened against the Swiss franc, falling to 0.7954 from 0.7977. It also slipped against the Canadian dollar to 1.3953 from 1.3963, and dropped further against the Swedish krona, trading at 9.3619 compared to 9.4027 previously. - October 4, 2025
