THE ringgit opened slightly higher against the US dollar on Thursday, buoyed by improved investor sentiment ahead of the upcoming tabling of Budget 2026, which is widely anticipated to outline further fiscal consolidation measures.
At 8.00 am, the Malaysian currency stood at 4.2120/2220 against the greenback, edging up from Wednesday’s close of 4.2140/2195.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the positive momentum was likely driven by expectations that the government will maintain its fiscal discipline, with a focus on reducing the deficit below the 3.8 per cent of GDP target set for this year.
“This would translate into improved fiscal space and, more importantly, a better credit assessment, as the government’s debt-to-GDP ratio is expected to stabilise and gradually trend lower in line with the decline in new borrowings,” Bernama reported him saying.
Dr Afzanizam added that the ringgit is expected to remain within a narrow trading band of RM4.21 to RM4.22 against the US dollar throughout the day.
Against other major currencies, the ringgit showed a mixed performance. It strengthened against the British pound to 5.6441/6575 from 5.6501/6575 but eased against the euro at 4.8981/9098 compared with 4.8941/9005. It also slipped against the Japanese yen to 2.7578/7645 from 2.7559/7596 previously.
The local note was also mixed against regional currencies. It appreciated against the Thai baht to 12.9321/9708 from 12.9506/9739 and against the Indonesian rupiah at 254.1/254.8 from 254.2/254.7. However, it dipped slightly against the Singapore dollar to 3.2508/2587 from 3.2503/2548, and remained almost unchanged versus the Philippine peso at 7.27/7.29. - October 9, 2025
