The Malaysian ringgit is anticipated to move in a limited 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 expected to guide market sentiment and currency movements. This outlook follows a week where the ringgit closed slightly lower versus the dollar but showed broad strength against other global and regional currencies.
Market participants will be closely monitoring US labour market reports, 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. Additionally, the upcoming tabling of Malaysia’s Budget 2026 on October 10 is expected to draw significant attention for its potential impact on fiscal policy and economic direction.
The local currency ended the recent week marginally weaker against the US dollar, settling at 4.2200/2250 compared to 4.2040/2115 the previous week. Despite this dip, the ringgit demonstrated notable appreciation against several major currencies, including the Japanese yen, the euro, and the British pound. This mixed performance highlights the currency’s sensitivity to both domestic factors and international economic developments.
Looking ahead, the government’s expansionary fiscal stance, coupled with efforts to reduce fiscal deficits, is projected to support the ringgit over the medium to longer term. Such policy measures, alongside sustained demand for the local currency, are likely to provide a stable foundation. Investors and analysts will continue to assess both local budgetary announcements and global economic trends for further directional cues.