The ringgit opened flat against the US dollar on Monday as investor interest remained high in the US currency, but was supported by positive sentiment in the country following the tabling of Budget 2026.
At 10am, the ringgit was stable at 4.2210 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 Budget 2026 showed the government continued to maintain fiscal discipline with the deficit expected to narrow to 3.5 per cent of Gross Domestic Product (GDP) in 2026 compared to 3.8 per cent this year.
He added that there may be support for the ringgit after a period of correction. The ringgit is expected to trade between RM4.20 and RM4.21 today.
He also explained that the US Dollar Index (DXY) is currently on a weak trajectory after falling 0.58 percent to 98.978 points on Friday, following US President Donald Trump's threat to raise import tariffs of up to 100 percent on all exports from China to the US.
In the opening session, the ringgit traded lower against several major currencies.
It fell against the Japanese yen to 2.7756/7799 from 2.7618/7659, declined against the British pound to 5.6295/6375 from 5.6084/6164, and weakened against the euro to 4.8960/9030 from 4.8838/8907 at the previous close.
Against ASEAN currencies, the ringgit was mostly lower as it declined against the Singapore dollar to 3.2524/2575 from 3.2494/2543 and eased against the Thai baht to 12.9186/9457 from 12.8942/9184.
However, the ringgit remained flat against the Indonesian rupiah at 254.6/255.1 and unchanged against the Philippine peso at 7.24/7.26.
