Ringgit Poised for Gains on Weaker US Jobs Data

The Malaysian ringgit is expected to strengthen against the US dollar next week due to weaker-than-expected US employment data. Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, notes that the September non-farm payrolls rose by only 29,000 jobs, well below market expectations of 89,000.

The unemployment rate also increased to 4.2 per cent. Dr Mohd Afzanizam believes this could weigh on the greenback and provide support for the ringgit.

Next week's focus will be on Malaysia's Budget 2027 tabling on October 9, with market participants likely to assess the government's fiscal deficit target for 2027 and any adjustments to this year's target of 3.5 per cent of gross domestic product (GDP).