KUALA LUMPUR: The ringgit is expected to trade within the 4.04-4.07 range next week with the balance of risks tilted modestly towards a firmer ringgit as global investors rotate away from the dollar and back into emerging-market carry and growth exposure, an analyst said.
IPPFA Sdn Bhd director of investment strategy and country economist, Mohd Sedek Jantan, told Bernama that the ringgit’s direction will be shaped by how the latest US non-farm payrolls (NFP) report feeds into US Federal Reserve (Fed) expectations.
He noted the December 2025 payroll growth came in at just 50,000 jobs, less than the consensus estimates of 60,000 jobs, while two-month net revisions subtracted 76,000 jobs, confirming that US labour-market momentum had weakened materially into year-end.
The unemployment rate fell to 4.4 per cent, reflecting tightening labour supply rather than stronger hiring, reinforcing the late-cycle slowdown narrative rather than a re-acceleration in growth, Mohd Sedek said.
"With the NFP data undershooting consensus, it also aligns with our in-house view that the Fed is likely to skip a rate cut at this month’s meeting, while keeping the door open to easing later as labour conditions continue to soften.
"Against this backdrop, Malaysia’s firm growth momentum, resilient trade position and steady domestic demand provide a solid foundation for the ringgit," he said.
The local currency traded mostly lower this week, opening at 4.05 on Monday and easing to 4.06 on Friday morning. It closed the week at 4.07.
The ringgit traded mostly higher against a basket of major currencies this week.
It strengthened against the Japanese yen to 2.5805/5848 from 2.5817/5848 a week earlier, appreciated versus the euro to 4.7383/7459 from 4.7488/7540, but weakened vis-a-vis the British pound to 5.4579/4666 from 5.4509/4569 previously.
The ringgit traded mixed against its ASEAN peers.
The local currency appreciated against the Indonesian rupiah to 241.9/242.4 from 242.2/242.6 a week ago, and inched up against the Philippine peso to 6.87/6.88 from 6.88/6.89 previously.
It depreciated against the Thai baht to 12.9474/9738 from 12.8996/9201 last week, and declined against the Singapore dollar to 3.1629/1682 from 3.1502/1540 previously. - Bernama
