Ringgit Poised to Gain as Weaker US Job Data Boosts Expectations
The ringgit is expected to strengthen against the US dollar next week due to weaker-than-expected US employment data, which may lead the Federal Reserve to skip a rate hike this month. According to Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, the latest US labour market data shows that non-farm payrolls rose by only 29,000 jobs in September, well below market expectations of 89,000.
The ringgit's performance will also be influenced by the tabling of Malaysia's Budget 2027 on October 9. Market participants will assess the government's fiscal deficit target for 2027 and any adjustments to this year's deficit target of 3.5% of GDP. Dr Afzanizam noted that total revenue grew 12% to RM165.4 billion in the first half of 2026, driven mainly by a 32% increase in sales and service tax collection.
On a Friday-to-Friday basis, the ringgit weakened against the greenback to 4.0820/0870 from 4.0715/0765 a week earlier. However, it strengthened to 4.5927/5983 versus the euro from 4.6378/6435 in the previous Friday.