Kuala Lumpur:The ringgit appreciated against the US dollar on Friday, buoyed by the government's dedication to fiscal consolidation as outlined in Budget 2027.

According to BERNAMA News Agency, at 6 pm, the ringgit advanced to 4.0830/0875 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 Malaysia's fiscal deficit is anticipated to decrease to 3.3 percent of GDP in 2027 from an estimated 3.6 percent in 2026. This reduction in fiscal deficit underscores the government's commitment to fiscal discipline, which is expected to reinforce confidence among traders and investors in the ringgit.

The ringgit showed mixed performance against other major and ASEAN currencies. It strengthened against the Japanese yen to 2.5791/5821 from the previous 2.5834/5867 but weakened against the British pound to 5.4063/4123 from 5.3930/3996 and against the euro to 4.5807/5858 from 4.5719/5775.

In regional trading, the ringgit rose against the Indonesian rupiah to 228.1/228.4 from 228.2/228.6 and remained stable against the Philippine peso at 6.50/6.51. It edged lower against the Singapore dollar to 3.1896/1934 from 3.1893/1934 and declined against the Thai baht to 12.1735/1909 from 12.1371/1563.