Ringgit Strengthens Ahead of Budget 2027 Announcement

The Malaysian ringgit ended Tuesday’s trading session slightly stronger against the US dollar, as investors awaited the tabling of Budget 2027 on Friday for fresh market signals. At the close, the ringgit stood at 4.0835/4.0880 per dollar, up from the previous day’s 4.0845/4.0890.

According to Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid, the ringgit is likely to remain within a tight trading range until the budget is announced. He noted that the local currency fluctuated between RM4.0848 and RM4.0880 during the day, while the US Dollar Index (DXY) dropped 0.14% to 102.028 points.

Despite the DXY’s decline, Afzanizam said the index remained high, supported by expectations of further interest rate hikes in the US, which could continue bolstering the greenback.

The ringgit showed mixed performance against other major and ASEAN currencies. It strengthened against the Japanese yen, rising to 2.5807/2.5837 from 2.5858/2.5886, but weakened against the euro and the British pound. Against ASEAN peers, the ringgit gained on the Philippine peso but lost ground to the Singapore dollar, Indonesian rupiah, and Thai baht.