Ringgit Poised for Gains as Weaker US Jobs Data Hits Greenback

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

The 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.

In Malaysia, the focus next week will be on the tabling of Budget 2027 on October 9. Market participants are likely to 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.