Ringgit Ends Higher Ahead of US Jobs Data Revision

KUALA LUMPUR – The ringgit ended firmer against the US dollar, supported by cautious optimism as investors awaited the upcoming revision to US nonfarm payrolls data, which is expected to provide fresh signals on the Federal Reserve’s policy path.

At market close, the local currency strengthened to 4.3100/4.3150 against the greenback, compared with 4.3250/4.3300 previously. Dealers noted that selective buying interest in emerging-market currencies, coupled with softer demand for the US dollar, helped bolster sentiment toward the ringgit.

A currency strategist said that market participants are closely monitoring the revised jobs report, which could influence expectations on whether the Fed maintains its restrictive stance or leans toward a rate adjustment later in the year.

“The ringgit’s performance reflects a cautious market tone. While the US dollar remains underpinned by safe-haven demand, investors are positioning ahead of the jobs data revision to gauge the Fed’s next step,” the strategist explained.

The ringgit was also traded mostly higher against a basket of major currencies.

• It advanced against the euro at 4.6900/4.6950 from 4.7050/4.7100.
• It gained versus the Japanese yen at 2.8900/2.8950 from 2.9050/2.9100.
• It appreciated against the British pound to 5.4700/5.4750 from 5.4850/5.4900.

Against regional peers, the local note showed a mixed performance:

• It strengthened versus the Singapore dollar to 3.1800/3.1850 from 3.1900/3.1950.
• It was marginally higher against the Thai baht at 12.2000/12.2200 from 12.2300/12.2500.
• It held steady against the Philippine peso at 7.6400/7.6500.
• It eased slightly versus the Indonesian rupiah at 278.50/278.70 from 278.00/278.20.

Analysts highlighted that the ringgit’s near-term direction will hinge on external factors, particularly the trajectory of the US dollar index and evolving expectations surrounding the Fed’s policy outlook.

“Domestically, Malaysia’s economic fundamentals remain supportive of the ringgit in the medium term, especially if commodity prices stabilize and foreign inflows continue,” another dealer added.