Ringgit Poised to Gain Ground on Weaker US Job Data

The Malaysian ringgit is expected to strengthen 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.

US non-farm payrolls rose by only 29,000 jobs in September, well below market expectations of 89,000. The unemployment rate also increased to 4.2 per cent. Dr Mohd Afzanizam noted that this data could influence the US Federal Reserve's decision on interest rates.

Next week will see the tabling of Malaysia's Budget 2027 on October 9. Market participants will be assessing the government's fiscal deficit target for 2027 and any adjustments to this year's deficit target of 3.5 per cent of GDP.