The ringgit traded positive against the US dollar at the opening trade as the market expected the local currency to stabilize while focusing on the fiscal deficit target for the year even as global banks eased their policies.
At 10.20am, the ringgit was at 4.3040 against the USD from its close of 4.3075 on Thursday.
Bank Muamalat Malaysia Bhd Chief Economist, Dr Mohd Afzanizam Abdul Rashid said the 2025 Budget that will be presented in Parliament later today is a high agenda and the market may increase next year's fiscal deficit target.
They will also examine the government's measures to be announced to maintain the rate of fiscal consolidation and at the same time, continue to support the Malaysian economy.
He also said that the European Central Bank is expected to lower its policy rate by 25 basis points following inflation falling below the two percent target and weak business sentiment in the manufacturing sector.
Globally, the US Dollar Index continues to be well supported with the European Central Bank cutting their policy rate by 25 basis points yesterday.
Moreover, the US Fed does not appear to be too keen to set aggressive monetary easing on the back of the resilience of the US economy.
At the opening, the ringgit was mostly higher against a basket of major currencies.
It rose against the euro to 4.6615/6831 from Thursday's close of 4.6771/6803 and rose against the Japanese yen to 2.8673/8808 from Thursday's close of 2.8790/8812.
But the ringgit fell against the British pound to 5.6025/6286 from 5.5967/6006.
The ringgit also traded mostly low against Asean currencies.
It strengthened against the Singapore dollar to 3.2758/2912 from 3.2782/2807 and rose against the Thai baht to 12.9614/13.0326 from 12.9619/9776. It also opened slightly higher against the Indonesian rupiah at 277.5/279.0 from 277.7/278.
The local currency was almost flat against the Philippine peso at 7.44/7.48 from 7.44/7.46
