Ringgit poised to rise next week as US job data disappoints

Analysts expect the ringgit to trade between RM4.07 and RM4.08 against the US dollar next week, buoyed by US labour data that fell short of expectations. Dr Mohd Afzanizam Abdul Rashid of Bank Muamalat Malaysia Bhd highlighted that September's non-farm payrolls grew by just 29,000 jobs and the unemployment rate rose to 4.2%, factors that could curb the Federal Reserve's inclination to raise rates. He added that investors will soon focus on Malaysia's Budget 2027, slated for Oct 9, to gauge the government's fiscal deficit outlook for 2027 and any adjustments to one outlet 3.5% of GDP target.

The budget documents show a 12% rise in total revenue to RM165.4 billion in H1 2026, largely from a 32% jump in sales and service tax collections, while operating expenditure climbed 14.4% to RM94.6 billion, with subsidies expanding by 61.2% to RM38.0 billion. The ringgit had slipped slightly against the dollar over the previous week but gained modestly against the euro, while weakening versus the pound and yen.