The Malaysian ringgit is projected to move within a tight band against the US dollar in the coming week, influenced by domestic demand and upcoming economic indicators from the United States. Key data releases, including US employment figures, are anticipated to guide market sentiment and currency movements. This outlook reflects a balance between local support factors and international economic developments.
Market participants will closely monitor US labour statistics such as job openings, ADP employment change, and nonfarm payrolls. According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, recent weekly jobless claims suggest continued resilience in the US labour market. These indicators will provide important signals about the strength of the US economy and potential impacts on currency flows.
Domestic factors also remain in focus, with the upcoming tabling of Budget 2026 on October 10 expected to influence the ringgit’s trajectory. The government is anticipated to maintain expansionary policies while working to reduce fiscal deficits over time. Such fiscal management is viewed as supportive for the currency’s medium to long-term stability and performance.
Despite ending the week slightly weaker against the US dollar at 4.2200/2250 compared to the previous week’s 4.2040/2115, the ringgit demonstrated strength against other major currencies. It appreciated against the Japanese yen, euro, and British pound, showing broad-based improvement in its cross-currency performance during the period.
The local currency also registered gains against regional counterparts, strengthening against the Singapore dollar, Philippine peso, Indonesian rupiah, and Thai baht. This pattern of regional currency appreciation indicates relative strength in the ringgit’s positioning within Asian markets, even as it faces pressure from the US dollar.