Ringgit and Regional Currencies Under Pressure from Strong US Jobs Data

The ringgit and other regional currencies are expected to face pressure next week due to strong US jobs data, which bolsters the greenback.

A stronger-than-expected US non-farm payrolls (NFP) release overnight has increased the chances of a US interest rate hike, supporting the dollar.

Market attention will remain focused on upcoming US economic data, particularly the Consumer Price Index (CPI) report next Friday, which is seen as a key determinant for the US Federal Reserve's next interest rate decision.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the strong NFP outturn in August suggests that the Fed may raise its benchmark interest rate in the upcoming FOMC meeting on September 15 and 16. The NFP came in at 162,000 in August, well above the consensus forecast of 55,000.