Kuala Lumpur:The ringgit is predicted to appreciate against the US dollar next week, potentially trading between RM4.07 and RM4.08, as investors analyze the Budget 2027 announcements for insights into Malaysia's economic outlook.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd's chief economist Dr Mohd Afzanizam Abdul Rashid noted that market focus will remain on Budget 2027, with economists and analysts expected to scrutinize the details and implications in the coming days.

Budget 2027, presented in the Dewan Rakyat, includes measures such as a tax cut for the M40 income group and enhanced guarantees for SMEs through Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) and Credit Guarantee Corporation Malaysia Bhd (CGC). These measures aim to keep businesses vibrant, with the individual tax relief limit increased to RM12,000 from RM9,000, benefiting the middle-income group. Additionally, RM32 billion in financing guarantees will be available next year through SJPP and CGC.

Despite these domestic measures, concerns about the external environment, particularly US interest rates, continue to be a significant consideration for market participants.

On a weekly basis, the ringgit slightly weakened against the US dollar, easing to 4.0830/0875 from 4.0820/0870. However, it showed mixed performance against other major currencies, strengthening against the euro and Japanese yen but depreciating against the British pound.

Within the ASEAN region, the ringgit mostly gained, rising against the Singapore dollar and the Indonesian rupiah, and improving vis-a-vis the Philippine peso, although it fell against the Thai baht.