THE ringgit is expected to remain range-bound next week, trading between RM3.95 and RM3.96 against the US dollar as investors await fresh economic signals from the United States.
Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid said market attention will focus on January’s US nonfarm payroll (NFP) report, which consensus estimates project at 68,000 new jobs, with the unemployment rate likely holding steady at 4.4 per cent.
“There will also be a series of Federal Reserve officials sharing their insights next week. They are likely to maintain a cautious stance on inflation, which suggests that restrictive monetary policy will continue for now,” he told Bernama.
Kenanga Investment Bank Bhd noted that the absence of significant deterioration in US jobs data leaves little urgency for the Fed to ease its monetary stance immediately, indicating that the US Dollar Index (DXY) should remain well supported in the near term.
The investment bank highlighted that next week’s focus will be on delayed US labour data and softer private-sector jobs, which are expected to meet forecasts and avoid any surprises for the US dollar.
“Even so, we expect official releases to land broadly in line with consensus, delivering no negative surprise for the US dollar,” Kenanga IB said.
On the domestic front, Malaysia is set to release its Industrial Production Index (IPI) and the final fourth-quarter 2025 gross domestic product (GDP) report next week. Analysts anticipate these figures will reinforce the country’s growth narrative, supporting business activity and lending confidence to the ringgit, despite continuing external foreign exchange pressures.
This week, the ringgit traded between RM3.9295 and RM3.9440 against the US dollar, ending the week largely flat at 3.9440/9525 compared with last Friday’s 3.9440/9500.
The local currency also gained against a basket of major currencies. It strengthened against the Japanese yen to 2.5111/5167 from 2.5562/5603, appreciated versus the British pound to 5.3548/3663 from 5.4163/4245, and rose against the euro to 4.6508/6608 from 4.6957/7029.
Regionally, the ringgit traded mostly higher against its ASEAN peers. It advanced against the Singapore dollar to 3.0965/1034 from 3.1077/1127, surged versus the Thai baht to 12.4609/4933 from 12.5250/5544, gained against the Indonesian rupiah to 233.6/234.3 from 234.9/235.4, but eased slightly versus the Philippine peso to 6.73/6.75 from 6.69/6.71.
Analysts suggest that while the ringgit’s near-term movement is likely to remain subdued, domestic growth indicators and a stable US economic outlook may provide subtle support, keeping the currency range-bound. - February 7, 2026
