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THE ringgit remained stable against the US dollar in early trade on Monday, underpinned by growing market confidence in the government’s fiscal direction following the tabling of Budget 2026, which signalled continued efforts towards deficit reduction.
At 8am, the local note was unchanged at 4.2200/2260 versus the greenback, holding the same level as Friday’s close.
Chief Economist at Bank Muamalat Malaysia Bhd, Dr Mohd Afzanizam Abdul Rashid, said the government’s latest budget reflects a disciplined fiscal stance, with the fiscal deficit expected to narrow further to 3.5 per cent of GDP in 2026, compared to 3.8 per cent this year.
“There could be some support for the ringgit following recent corrections. The ringgit is expected to trade between RM4.20 and RM4.21 today,” he told Bernama.
At the same time, the US Dollar Index (DXY) continued to exhibit a softer tone, ending last week at 98.978—a 0.58 per cent decline—after former US President Donald Trump threatened to raise tariffs on all Chinese imports to 100 per cent, rekindling fears of a renewed trade dispute.
Despite its resilience against the US dollar, the ringgit was lower against several other major and regional currencies.
It eased against the Japanese yen to 2.7756/7799 from 2.7618/7659 at Friday’s close, slipped against the British pound to 5.6295/6375 from 5.6084/6164, and was lower against the euro at 4.8960/9030 from 4.8838/8907.
In regional trade, the ringgit weakened against the Singapore dollar to 3.2524/2575 from 3.2494/2543 and fell against the Thai baht to 12.9186/9457 from 12.8942/9184.
It was unchanged against the Indonesian rupiah at 254.6/255.1 and flat versus the Philippine peso at 7.24/7.26. - October 13, 2025