Ringgit Opens Higher Against US Dollar

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, Oct 9 (Bernama) -- The ringgit opened higher against the US dollar on Thursday, supported by improved local market sentiment ahead of Budget 2026, which is expected to be a key catalyst for the currency.

At 8 am, the local note stood at 4.2120/2220 against the greenback, slightly firmer than Wednesday’s close of 4.2140/2195.

Bank Muamalat Malaysia Bhd chief economist, Dr Mohd Afzanizam Abdul Rashid, told Bernama the government is likely to maintain its commitment to narrowing the fiscal deficit to below this year’s target of 3.8 per cent of gross domestic product (GDP).

“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,” he said.

He added that the ringgit is expected to continue trading within a narrow range of RM4.21 to RM4.22 against the US dollar today.

At the opening, the ringgit was mixed against a basket of major currencies.

It strengthened against the British pound to 5.6441/6575 from Wednesday’s close of 5.6501/6575 but weakened versus the euro to 4.8981/9098 from 4.8941/9005, and slipped against the Japanese yen to 2.7578/7645 from 2.7559/7596 previously.

The ringgit was also mixed against ASEAN currencies.

It rose against the Thai baht to 12.9321/9708 from 12.9506/9739 and gained versus the Indonesian rupiah to 254.1/254.8 from 254.2/254.7. However, it eased against the Singapore dollar to 3.2508/2587 from 3.2503/2548 and was little changed against the Philippine peso at 7.27/7.29 compared with 7.27/7.28 previously.

-- BERNAMA