THE ringgit advanced against the US dollar and other major currencies on Thursday, supported by domestic economic strength and a rebound in crude oil prices, as the US dollar consolidated following mixed American economic data.
At 8 am, the ringgit was quoted at 3.9270/9370 against the US dollar, up from Wednesday’s close of 3.9305/9345.
Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, attributed the greenback’s muted momentum to weaker-than-expected US labour data.
According to the US Automatic Data Processing (ADP) report, private payrolls rose by 22,000 in January, falling short of consensus estimates of 46,000 and down from 37,000 in December, indicating softer hiring momentum in the US.
“Wage growth for job stayers, however, remained elevated at 4.5 percent year-on-year, signalling persistent labour cost pressures,” he noted.
At the same time, S&P Global’s services and composite purchasing managers’ indices remained above the 50-point threshold, indicating continued expansion, while the Institute for Supply Management’s services index held steady at 53.8 in January.
“While recent indicators continue to signal economic expansion, softer labour market dynamics have capped near-term US dollar momentum,” he told Bernama.
Meanwhile, Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said market sentiment is likely to remain cautious amid geopolitical developments, with investors closely monitoring planned talks between the US and Iran.
“Brent crude oil has risen by more than three percent to US$69.46 per barrel as tensions between the US and Iran escalated recently,” he said.
Reports indicate that US-Iran talks are scheduled in Oman on Friday, following the downing of an Iranian drone earlier this week.
The ringgit also strengthened across other major currencies. It rose against the British pound to 5.3584/3720 from 5.3887/3942, gained versus the euro to 4.6346/6464 from 4.6443/6490, and advanced against the Japanese yen to 2.5025/5091 from 2.5091/5118.
Against regional peers, the local currency showed broad-based gains, climbing against the Singapore dollar to 3.0846/0929 from 3.0912/0946, strengthening versus the Thai baht to 12.3716/4125 from 12.4206/4391, and edging higher against the Indonesian rupiah to 234.0/234.7 from 234.2/234.6.
The movements underscore the ringgit’s resilience amid external uncertainties, supported by domestic fundamentals and positive developments in commodity markets. - February 5, 2026
