Ringgit Finds Its Feet Amid US Data Drag
The ringgit opened stronger against the US dollar on Friday, extending its gains as weaker US economic indicators and ongoing tariff uncertainties dampened demand for the greenback.
At 8am, the local note rose to 4.2140/2335 against the US dollar from Thursday's close of 4.2245/2295.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) slipped by 0.05% to 98.741 points following the release of economic data pointing to further slowdown in the US economy.
'US Initial Jobless Claims rose to 247,000 last week, marking the second consecutive week of increases, while the Continuous Jobless Claims remained elevated to 1.904 million for the week ending 24 May 2025.
'The focus tonight will be on the Nonfarm Payroll (NFP), which is expected to reach 125,000 in May (consensus) from the previous month's print of 177,000,' he told Bernama .
He said the ringgit may continue to climb in the near term, potentially reaching RM4.20, as emerging market currencies appreciate on the back of a weaker US outlook and persistent concerns over tariffs and fiscal strategies.
'The prevailing market condition defied the norms because the US dollar has been deemed a safe-haven currency. Traders and investors would normally flock to the US dollar to seek protection against extreme volatility,' he added.
Mohd Afzanizam also cautioned that the market remains sensitive to US trade policy developments and political noise, particularly the recent fallout between US President Donald Trump and Elon Musk over fiscal matters, which may rattle investor sentiment.
'At the end of the day, it is about prescribing a good policy and implementing it promptly to see the outcome,' he said.
The ringgit also gained against most major and regional currencies at the start of the trading day.
Against the Japanese yen, the ringgit improved to 2.9343/9481 from 2.9495/9531 on Thursday, and rose against the British pound to 5.7226/7491 from 5.7301/7369. However, it slipped versus the euro to 4.8263/8486 from 4.8235/8292.
In ASEAN trade, the ringgit strengthened to 3.2758/2915 against the Singapore dollar from 3.2881/2922, and edged higher against the Indonesian rupiah to 258.7/260.1 from 259.3/259.8.
It also surged against the Thai baht to 12.9157/9854 from 12.9925/13.0138 and appreciated against the Philippine peso to 7.57/7.62 from 7.59/7.61. Related
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