Ringgit ends higher against US dollar on Budget 2027 fiscal discipline

 Budget 2027’s commitment to fiscal discipline, including a narrower fiscal deficit, boosted the ringgit, says an analyst.

KUALA LUMPUR:

The ringgit closed higher against the US dollar on Friday, supported by the government’s commitment to fiscal consolidation under Budget 2027, an analyst said.

At 6pm, the ringgit climbed to 4.0830/4.0875 against the greenback from Thursday’s close of 4.0890/4.0940.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid said Malaysia’s fiscal deficit is expected to narrow to 3.3% of gross domestic product (GDP) next year from an estimated 3.6% in 2026.

At the close, the ringgit traded mixed against a basket of major and Asean currencies.

The local currency rose against the Japanese yen to 2.5791/2.5821 from 2.5834/2.5867 at Thursday’s close, but dipped against the British pound to 5.4063/5.4123 from 5.3930/5.3996 and eased against the euro to 4.5807/4.5858 from 4.5719/4.5775 previously.

Compared with its Asean peers, the local currency was up against the Indonesian rupiah to 228.1/228.4 from 228.2/228.6, but remained unchanged against the Philippine peso at 6.50/6.51.

It edged down against the Singapore dollar to 3.1896/3.1934 from 3.1893/3.1934 at Thursday’s close, and slid against the Thai baht to 12.1735/12.1909 from 12.1371/12.1563 previously. - FMT