Kuala Lumpur:The ringgit opened higher against the US dollar on Monday, buoyed by the Malaysian government's pledge to maintain fiscal discipline following the tabling of Budget 2027 last Friday.

According to BERNAMA News Agency, the ringgit appreciated to 4.0820/0880 against the US dollar at 8 am, compared to Friday's closing rate of 4.0830/0875. This rise is attributed to the government's target to reduce the fiscal deficit to 3.3% of the gross domestic product by 2027, down from an estimated 3.6% this year, as stated by Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid.

Dr. Mohd Afzanizam noted that this pragmatic fiscal approach should help preserve Malaysia's sovereign credit rating, thus providing firm support for the ringgit. However, he mentioned that external conditions remain uncertain, with developments in West Asia and their potential impact on global crude oil prices being closely monitored.

He also highlighted the focus on whether the US Federal Reserve will consider raising interest rates further this month. Consequently, the ringgit-US dollar pair is expected to maintain a tight-range bias.

At the opening, the ringgit traded mostly higher against a range of major and ASEAN currencies. It strengthened against the British pound and the euro, while showing mixed performance against other currencies such as the Japanese yen and the Singapore dollar. The ringgit also rose against the Thai baht and Indonesian rupiah, while remaining unchanged against the Philippine peso.