Kuala Lumpur:The ringgit opened slightly higher against the US dollar on Friday as markets cautiously evaluated the fiscal outlook ahead of Budget 2027's presentation.

According to BERNAMA News Agency, at 8 am, the ringgit rose to 4.0880/0945 against the dollar, compared to Thursday's close of 4.0890/0940.

Bank Muamalat Malaysia Bhd's chief economist, Dr. Mohd Afzanizam Abdul Rashid, noted that the focus would be on the government's fiscal position, with expectations of maintaining fiscal discipline to keep the fiscal deficit on a declining path. This focus is especially crucial given the political context with upcoming state elections and a future general election.

"Maintaining fiscal discipline will continue to be key to ringgit strength, as this will ensure that the economic fundamentals support the Malaysian currency," Dr. Mohd Afzanizam told Bernama.

The ringgit saw a decline against major currencies at the opening. It fell to 4.5839/5912 against the euro from 4.5719/5775 at Thursday's close, weakened to 2.5862/5905 against the Japanese yen from 2.5834/5867, and eased to 5.4076/4162 against the British pound from 5.3930/3996.

Against regional currencies, the ringgit showed mixed performance. It strengthened against the Singapore dollar to 3.1918/1971 from 3.1893/1934 but weakened against the Thai baht to 12.1468/1715 from 12.1371/1563. The ringgit remained unchanged against the Philippine peso at 6.50/6.51 and the Indonesian rupiah at 228.2/228.6.