The ringgit opened slightly higher against the US dollar, trading at 4.3050/3250 compared to yesterday’s close of 4.3075/3105, as traders awaited the tabling of Budget 2025 in Parliament. Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid highlighted that the fiscal deficit targets for the upcoming year are a key focus for traders, alongside measures to sustain fiscal consolidation while supporting economic growth.
Ringgit Edges Upward Slightly
Globally, the US Dollar Index remained strong as the European Central Bank recently cut policy rates by 25 basis points amid weakening business sentiment and inflation falling below the 2% target. Conversely, the US Federal Reserve has shown less inclination toward aggressive monetary easing due to the resilient US economy.
The ringgit showed mixed performance against other currencies, strengthening against the euro and Japanese yen, but slipping against the British pound and remaining almost flat versus the Philippine peso. It also traded mostly lower against ASEAN currencies, though it did gain slightly against the Singapore dollar, Thai baht, and Indonesian rupiah.
