The ringgit opened lower against the US dollar as traders expect trading to move in a tight range ahead of the Budget 2026 presentation, with the focus on the government's fiscal deficit target to be announced later this week.
At 10am, the ringgit was at 4.2120, down 0.14% against the US dollar since it opened early Monday in the Asian session.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said the US dollar-ringgit exchange rate could hover between RM4.21 and RM4.22 today, as the market remains cautious ahead of Friday's budget announcement.
He expected the government to maintain fiscal discipline, with a reduction in the budget deficit next year.
Mohd Afzanizam said the budget allocation was likely to remain stable, supporting domestic demand through both consumption and investment.
Sentiment should generally be positive for the ringgit, as the government remains committed to fiscal prudence while balancing the need to stimulate economic growth.
In the early session, the ringgit traded higher against a basket of major currencies.
It rose against the euro to 4.9336/9418 from 4.9360/9442 last Friday, rose against 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 previously.
The local note, however, was mostly lower against ASEAN currencies.
It weakened against the Thai baht to 13.0005/0282 from 12.9807/13.0084 last Friday, depreciated against the Indonesian rupiah to 254.2/254.7 from 253.9/254.4, and depreciated against the Philippine peso to 7.27/7.26 from 7.27/7.28
However, it strengthened against the Singapore dollar to 3.2598/2657 from 3.2621/2678
