Ringgit Strengthens as Weak US Jobs Data Dampens Rate Hike Hopes
The Malaysian ringgit strengthened against the US dollar on Monday, October 5, 2026, as weaker-than-expected US jobs data reduced expectations of a Federal Reserve interest rate hike. The currency climbed to 4.0805/0870 against the greenback, up from 4.0820/0870 at the previous close.
Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid attributed the ringgit's rise to the latest nonfarm payrolls (NFP) report, which showed only 29,000 jobs added in September, far below the forecasted 90,000. The US unemployment rate also ticked up to 4.2%, suggesting the Fed may hold off on raising rates at its October 27-28 meeting.
The ringgit gained ground against most major currencies, including the Japanese yen and euro, but softened against the British pound. Regionally, it advanced against the Singapore dollar and Thai baht, while holding steady against the Philippine peso and Indonesian rupiah.