Market participants are anticipating the ringgit to move in a constrained band against the US dollar in the coming week, with forecasts placing it between RM4.21 and RM4.23. This stability is largely attributed to consistent demand for the Malaysian currency alongside the influence of upcoming economic indicators from the United States. According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, key US labour market reports will be a primary focus for investors.
These reports include the Job Openings and Labor Turnover Survey, ADP employment change data, and the critical nonfarm payrolls figures. Recent weekly initial jobless claims have pointed to a resilient US labour market, with unemployment benefit applications holding at relatively subdued levels. Such data points are closely monitored for their potential impact on global currency movements and investor sentiment.
Beyond immediate US data, domestic fiscal policy is also set to influence the ringgit’s trajectory. The tabling of Budget 2026 on October 10 is expected to draw significant attention, with expectations that the government will sustain an expansionary fiscal approach while working to reduce fiscal deficits. Such a strategy is viewed as supportive for the ringgit’s medium to long-term performance.
For the week just ended, the ringgit experienced a slight depreciation against the US dollar, closing at 4.2200/2250 compared to 4.2040/2115 the previous week. Despite this dip against the greenback, the local currency demonstrated broad strength against other major and regional currencies. It appreciated against the Japanese yen, euro, and British pound, while also posting gains versus the Singapore dollar, Philippine peso, Indonesian rupiah, and Thai baht.