Ringgit slips against dollar as markets await budget 2026 fiscal signals

THE ringgit opened lower against the US dollar on Monday as traders adopted a cautious stance ahead of the tabling of Malaysia’s Budget 2026 later this week, with focus centred on the government’s fiscal targets.

At 8.08am, the local currency slipped to 4.2110/2180 versus the greenback compared with last Friday’s close of 4.2055/2125.

Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, said the US dollar-ringgit exchange rate is likely to trade within the RM4.21 to RM4.22 range as investors await clarity on fiscal plans.

“All eyes are on Budget 2026 this week. We expect the government to maintain fiscal discipline, with a further narrowing of the budget deficit next year,” he told Bernama.

He added that the upcoming federal budget is likely to support domestic demand through stable allocations for both consumption and investment, while sentiment should remain broadly positive for the ringgit if fiscal prudence is upheld.

In early trade, the ringgit posted gains against several major currencies. It rose slightly against the euro to 4.9336/9418 from 4.9360/9442, firmed versus the British pound to 5.6571/6665 from 5.6577/6671, and appreciated against the Japanese yen to 2.8158/8206 from 2.8537/8586.

However, the local note was mixed against ASEAN currencies. It weakened against the Thai baht to 13.0005/0282 from 12.9807/13.0084, eased versus the Indonesian rupiah to 254.2/254.7 from 253.9/254.4, and slipped against the Philippine peso to 7.27/7.29 from 7.26/7.28. It strengthened slightly against the Singapore dollar at 3.2598/2657 compared with 3.2621/2678 previously. - October 6, 2025