KUALA LUMPUR: The ringgit opened higher against the US dollar on the first trading day of Budget 2025 week, buoyed by optimism that the government will likely maintain fiscal discipline and keep the fiscal deficit below four per cent of Gross Domestic Product growth next year.

At 8.05 am, the local currency strengthened to 4.2850/3010 against the greenback, up from Friday's close of 4.2865/2910.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said attention on Friday's budget announcement would drive market sentiment this week.