Ringgit Gains Ground Following Softer US Labour Market Data

The ringgit opened higher against the US dollar on Wednesday morning, reaching 4.0940/4.0995 compared to Tuesday’s closing rate of 4.0945/4.0985. The appreciation of the local currency follows the release of weaker-than-expected economic data from the United States, which exerted downward pressure on the greenback.

According to the original publisher, the US Job Openings and Labour Turnover Survey (JOLTS) report indicated that job openings in the US fell for a second consecutive month, dropping to 7.36 million in June from 7.54 million in May. Consequently, the US Dollar Index (DXY) saw a marginal decline of 0.01% to 99.890 points. Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid stated that the ringgit is expected to trade within the range of RM4.08 to RM4.10 today as it benefits from the latest US economic figures.

Market experts suggest that the ringgit is currently supported by sustained capital inflows into Asia’s technology sector alongside resilient global risk sentiment. Stephen Innes, managing partner at SPI Asset Management, noted that the currency is expected to maintain a firmer bias. However, he cautioned that significant gains may be limited as investors exercise restraint while awaiting the US non-farm payrolls report scheduled for release this Friday.

While risk appetite has improved, broader currency markets have remained largely range-bound. A sharp decline in oil prices has reinforced market expectations that the US Federal Reserve may adopt a more dovish policy stance. As global central banks navigate these shifting conditions, the adjustments in currency valuations continue to reflect individual policy reactions to the evolving economic landscape.

For Malaysian businesses and investors, these fluctuations underscore the continued sensitivity of the ringgit to US monetary policy indicators. With key labour market data still to be released, the local currency remains influenced by the broader outlook on interest rates and international capital flows.