At 8.08am, the ringgit eased to 4.2110/4.2180 against the greenback from last Friday’s close of 4.2055/4.2125.

Bank Muamalat Malaysia Bhd chief economist, Afzanizam Rashid, said the US dollar-ringgit exchange rate could hover between RM4.21 and RM4.22 today, as markets stay cautious before Friday’s budget announcement.

“All eyes are on Budget 2026 this week. We expect the government to maintain fiscal discipline, with a further narrowing of the budget deficit next year,” he noted.

Afzanizam said the budget allocation is likely to remain stable, supporting domestic demand through both consumption and investment.

He added that sentiment should be broadly positive for the ringgit, as the government remains committed to fiscal prudence while balancing the need to spur economic growth.

At the early session, the ringgit traded higher against a basket of major currencies.

It rose versus the euro to 4.9336/4.9418 from 4.9360/4.9442 last Friday, inched up against the British pound to 5.6571/5.6665 from 5.6577/5.6671, and appreciated against the Japanese yen to 2.8158/2.8206 from 2.8537/2.8586 previously.

The local note, however, was mostly lower against Asean currencies.

It weakened versus the Thai baht to 13.0005/13.0282 from 12.9807/13.0084 last Friday, slipped against the Indonesian rupiah to 254.2/254.7 from 253.9/254.4, and eased versus the Philippine peso to 7.27/7.29 from 7.26/7.28.

However, it strengthened against the Singapore dollar to 3.2598/3.2657 from 3.2621/3.2678.