THE ringgit is expected to appreciate against the US dollar in the coming week, following weaker-than-expected nonfarm payrolls (NFP) data in the United States, which has intensified market speculation over a potential interest rate cut by the Federal Reserve.
The US economy added just 22,000 jobs in August, far below the consensus forecast of 75,000, while the unemployment rate inched up to 4.3 per cent from 4.2 per cent previously.
Bernama cited Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid saying the data suggests a softening in the US labour market, which may prompt the Fed to pivot towards supporting economic growth.
“Hence, the odds for an interest rate cut at the upcoming US Federal Open Market Committee (FOMC) meeting on 16–17 September are rising. More importantly, the Fed needs to exhibit that they are on top of their game, especially when the present US administration is challenging their monetary policy independence,” he told Bernama.
Dr Afzanizam expects the US dollar-ringgit exchange rate to range between RM4.20 and RM4.22 in the week ahead.
Despite the positive outlook, the ringgit ended the week slightly weaker against the greenback, closing at 4.2260/2320 compared to 4.2230/2275 previously.
However, the local currency traded higher against a basket of major currencies. It strengthened against the Japanese yen to 2.8489/8531 from 2.8708/8741 the previous week, gained against the British pound at 5.6793/6874 from 5.6833/6894, and appreciated against the euro to 4.9203/9273 from 4.9291/9343.
Among ASEAN currencies, the ringgit posted mixed performance. It rose against the Singapore dollar to 3.2775/2824 from 3.2859/2899, but fell against the Thai baht to 13.0666/0908 from 13.0327/0519, slipped against the Indonesian rupiah to 257.3/257.7 from 255.9/256.3, and edged lower against the Philippine peso to 7.40/7.42 from 7.39/7.40. – Sept 7, 2025