BERNAMA – The ringgit is projected to trade sideways against the US dollar next week, ahead of Malaysia’s Budget 2025.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said all eyes will be on the Budget 2025 presentation by Prime Minister Datuk Seri Anwar Ibrahim, scheduled for next Friday.
“Budget 2025 should provide some clear direction as the government is likely to remain committed to reducing the budget gap to sub-four per cent in 2025 which can be credit-positive from the perspective of credit rating agencies (CRAs). On that note, it is neutral to positive for the ringgit performance next week,” he told Bernama.
SPI Asset Management managing director Stephen Innes noted that external factors have been steering the ringgit’s performance and may continue to influence sentiment towards the currency in the upcoming week. He said that ultimately, external drivers – global risk sentiment, Middle East tensions, and China’s economic trajectory – will continue to dictate the ringgit’s movement.
“Should China roll out a stimulus package aimed at boosting consumption, it could trigger a meaningful shift, but for now, with geopolitical tensions still simmering, the market seems content to hold on to dollars. However, if China delivers a robust stimulus next week, the ringgit could catch a much-needed tailwind,” he added.
The ringgit has been trading mostly easier against the greenback for the week just ended after a slew of United States economic data suggested that its economy was on course for a soft landing.
On a Friday-to-Friday basis, the ringgit fell against the US dollar to 4.2865/2910 from 4.2155/2240 a week ago.
