Ringgit Eyes RM4.07 as Weaker US Jobs Data Bolsters Expectations

The ringgit may strengthen against the US dollar next week due to weaker-than-expected US employment data. According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, the latest US labour market data could weigh on the greenback and provide support for the ringgit.

US non-farm payrolls rose by only 29,000 jobs in September, well below market expectations of 89,000. The unemployment rate increased to 4.2 per cent.

The focus next week will be on the tabling of Malaysia's Budget 2027 on October 9. Market participants will assess the government's fiscal deficit target for 2027 and whether there would be any adjustment to this year's deficit target of 3.5 per cent of GDP.