THE ringgit edged lower against the US dollar in early trading on Monday as investors reacted to unexpectedly strong United States labour market data, which strengthened the greenback and reduced expectations of an imminent shift in Federal Reserve policy.
At the market open, the local currency weakened to 4.0470/0520 against the US dollar from Friday’s closing level of 4.0280/0320, reflecting renewed demand for the American currency following the latest economic indicators from the world's largest economy.
According to Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid, the US Dollar Index (DXY) strengthened to 100.069 points after employment figures pointed to continued resilience in the American labour market.
“Meanwhile, the nonfarm payrolls (NFP) came in at 172,000, beating consensus estimates of 85,000, while the unemployment rate was sustained at 4.3 per cent.
“Such a strong outturn is likely to keep the Federal Reserve restrictive when it meets for the Federal Open Market Committee (FOMC) meeting on June 16-17,” he told Bernama.
The stronger-than-anticipated employment report has reinforced market expectations that US policymakers may delay any move towards monetary easing, thereby supporting the dollar against a broad range of global currencies.
Despite its decline against the greenback, the ringgit recorded gains against most major currencies, highlighting the local unit’s relative resilience amid shifting global market sentiment.
The Malaysian currency strengthened against the British pound, rising to 5.3963/4029 from 5.4233/4287 previously, while also advancing against the euro to 4.6630/6687 compared with 4.6882/6928 at Friday’s close.
However, the ringgit slipped marginally against the Japanese yen, trading at 2.5240/5273 from 2.5183/5209 previously.
Performance against regional currencies was mixed as investors continued to assess both domestic and international economic developments.
The ringgit appreciated against the Singapore dollar to 3.1343/1384 from 3.1390/1424 and strengthened against the Thai baht to 12.3219/3446 from 12.3433/3605.
Conversely, it weakened against the Philippine peso to 6.58/6.59 from 6.55/6.56 and fell against the Indonesian rupiah to 224.3/224.7 from 223.3/223.6.
Market participants are expected to closely monitor upcoming US economic data and the Federal Reserve’s June policy meeting, with interest rate expectations likely to remain a key driver of currency market movements in the near term.
For Malaysia, the ringgit’s trajectory will continue to be influenced by external monetary developments, investor sentiment towards emerging markets and broader global economic conditions, particularly those emanating from the United States. - June 8, 2026
