Ringgit Holds Steady As Post-budget Optimism Balances Stronger Greenback

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Oct 13 (Bernama) -- The ringgit opened flat against the US dollar on Monday morning as investors remained biased towards the greenback, while positive local developments following Budget 2026 helped offset the pressure.

At 8 am, the local note was unchanged at 4.2200/2260 against the greenback compared with Friday’s close of 4.2200/2260.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the recent Budget 2026 announcement showed that the government continues to maintain its fiscal discipline, with the fiscal deficit expected to narrow further to 3.5 per cent of gross domestic product in 2026 from 3.8 per cent this year.

“Perhaps there could be some support for the ringgit after experiencing a correction. The ringgit is expected to hover around RM4.20 to RM4.21 today,” he told Bernama.

At the same time, Mohd Afzanizam said the US Dollar Index (DXY) was on a weaker trajectory at 98.978 points, down 0.58 per cent last Friday after US President Donald Trump threatened to raise import tariffs to 100 per cent on all exports from China to the US.

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

It eased vis-a-vis 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 fell against the euro to 4.8960/9030 from 4.8838/8907.

The ringgit was mixed against ASEAN currencies. 

It declined versus the against the Singapore dollar to 3.2524/2575 from 3.2494/2543 and weakened against the Thai baht to 12.9186/9457 from 12.8942/9184 at Friday’s close.

However, the ringgit was flat vis-a-vis the Indonesian rupiah at 254.6/255.1 from 254.6/255.1 and remained unchanged  against the Philippine peso to 7.24/7.26 from 7.24/7.26.

-- BERNAMA