Malaysian Ringgit Gains Against US Dollar Amid Budget 2027

The Malaysian ringgit closed higher against the US dollar on October 14, 2026, trading at 4.0805/4.0850. This followed an initial gain on October 12, when the currency opened at 4.0820/0880, supported by the government's tabling of Budget 2027. The budget includes a commitment to narrow the fiscal deficit from 3.6% this year to 3.3% of gross domestic product in 2027, a move analysts say helps preserve the nation's sovereign credit rating.

Market sentiment shifted toward US economic indicators by mid-week. Investors are closely monitoring the US consumer price index data, with consensus estimates predicting a September inflation rate of 3.6%. This reading is expected to shape the upcoming decision of the Federal Open Market Committee later this month.

While the ringgit showed strength against the US dollar, the Japanese yen, and several ASEAN currencies including the Singapore dollar and Thai baht, its performance was mixed against European currencies. It initially strengthened against the euro and British pound on October 12 but traded lower against them by October 14.