Ringgit to trade firmer against US dollar next week, ahead of US labour data

KUALA LUMPUR: The ringgit is expected to trade firmer next week following the US labour market data, an analyst said.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors would pay attention on two key developments, namely the Nonfarm Payrolls (NFP) and the unemployment rate – and the expiry of the 90-day pause on US tariff implementation.

“The labour market data will be pivotal in shaping expectations for the US Federal Reserve’s policy direction, with greater emphasis likely to shift towards supporting maximum employment

“With signs of a softening global and US economy emerging, investor sentiment is expected to remain cautious heading into the second half of 2025,” he told Bernama.

Mohd Afzanizam said the US job market is showing moderation, with the monthly average NFP standing at 123,800 in the first five months of 2025, down from 179,600 in the same period last year.

The unemployment rate had risen from 4.0 per cent in January to 4.2 per cent in March this year, he added.

On the currency front, he said the ringgit has shown resilience this week, rebounding from RM4.2948 against the US dollar on June 23 to RM4.2327 on June 26, marking a 1.5 per cent appreciation.

“With the US Dollar Index (DXY) on a softer trajectory, we anticipate the ringgit could trade firmer around RM4.22 to RM4.23 in the coming week,” he said.

The ringgit ended the week higher against the greenback, closing at 4.2300/2355 on Thursday from 4.2505/2565 last Friday.

The local note traded lower against a basket of major currencies.

The ringgit depreciated vis-à-vis the Japanese yen to 2.9359/9399 from 2.9245/9289 at last Friday’s close, shed against the British pound to 5.8141/8217 from 5.7356/7437 previously, and slid versus the euro to 4.9597/9661 from 4.9000/9069 at the end of last week.

The ringgit also traded lower against ASEAN currencies.

The local note dropped against the Singapore dollar to 3.3192/3240 on Thursday from 3.3088/3140 last Friday, and weakened versus the Thai baht to 13.0254/0488 from 12.9727/9969 last week.

It fell versus the Indonesian rupiah to 260.9/261.4 on Thursday from 259.2/259.7 last Friday and was marginally lower against the Philippine peso at 7.47/7.49 compared to 7.43/7.45 previously.

The market was closed on Friday for the Maal Hijrah public holiday. – Bernama