THE ringgit fell against the US dollar in early trade on Friday, weighed down by stronger-than-expected economic data from the United States that bolstered the greenback and dimmed sentiment towards emerging market currencies.
At 8.05am, the Malaysian currency stood at 4.2200/2300 against the US dollar, down from Thursday’s close of 4.2085/2120.
Stephen Innes, Managing Director at SPI Asset Management, attributed the ringgit’s decline to a sharp fall in US weekly jobless claims, which have reached their lowest level since 2022. He said this development had helped ease fears of a marked deterioration in the US labour market.
“This positive performance was further supported by a stronger-than-expected revision of second-quarter US GDP, marking the fastest growth rate in nearly two years,” he told Bernama.
Innes added that the robust data had offset concerns over the potential negative impact of protectionist trade and tariff policies associated with former President Donald Trump. “The figures reinforce the view that the US economy remains fundamentally resilient,” he said.
He cautioned, however, that the ringgit could continue to face selling pressure, noting that sentiment towards emerging markets remains cautious. “Investors are likely to stay on the sidelines until there is greater clarity on US inflation trends and the Federal Reserve’s monetary stance going into October,” Innes said.
Dr Mohd Afzanizam Abdul Rashid, Chief Economist at Bank Muamalat Malaysia Bhd, forecast that the ringgit would likely trade within a narrow range of RM4.21 to RM4.22 over the day. He pointed to continued strength in the US Dollar Index (DXY), following an upward revision of second-quarter US GDP from 3.3 per cent to 3.8 per cent.
Despite its depreciation against the US dollar, the ringgit opened higher against several major currencies. It appreciated to 2.8146/8215 against the Japanese yen (from 2.8283/8308), to 4.9197/9313 against the euro (from 4.9429/9470), and to 5.6257/6390 against the British pound (from 5.6600/6647).
In regional trade, the ringgit recorded mixed performance. It strengthened to 3.2589/2669 against the Singapore dollar (from 3.2662/2692) and to 13.0897/1285 against the Thai baht (from 13.0959/1133). However, it eased to 7.26/7.28 against the Philippine peso (from 7.24/7.25), and was little changed at 251.9/252.6 against the Indonesian rupiah (from 251.2/251.5). - September 26, 2025
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