KUALA LUMPUR: The ringgit ended firmer against the US dollar yesterday, extending gains after hovering near the 4.09 level last week, as investors remained constructive ahead of key US data.
At 6pm, the ringgit edged up to 4.0930/0980 against the greenback, from 4.0945/1005 at last Friday’s close.
Upcoming US indicators include the nonfarm payrolls, consumer price index (CPI), personal consumption expenditures and the University of Michigan’s consumer sentiment index.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama that the ringgit continued to appreciate as the US Dollar Index (DXY) slipped 0.05% to 98.352 points.
“Traders and investors remain constructive on the ringgit, although they are cautious ahead of this week’s data releases and remarks from US Federal Reserve officials,” he said.
Last Friday, the ringgit hovered near the 4.09 level, its strongest in four years and seven months, supported by positive Malaysian economic data.
Kenanga Investment Bank Bhd
said investors would focus on November’s US labour report due today, with consensus expecting nonfarm payrolls of 50,000 and the unemployment rate at 4.4%.
It added that downside risks persist due to the prolonged US government shutdown, while November’s inflation report is also due, with core CPI likely to hold near 3%.
“A weaker US labour print alongside steady inflation would likely extend US dollar softness.
“With seasonal US dollar weakness reinforcing these trends, the DXY could slip below 98.0. A move below 4.10 against the US dollar this week appears increasingly likely, bringing the ringgit closer to our end-2025 forecast of 4.08,” it added.
At the close, the ringgit, however, traded lower against a basket of major currencies.
It weakened versus the British pound to 5.4793/4860 from 5.4789/4869 at last Friday’s close and eased against the Japanese yen to 2.6410/6444 from 2.6264/6304.
