THE ringgit opened stronger against the US dollar on Friday, buoyed by shifting investor expectations ahead of closely watched US labour market data that could weaken the greenback.
In early trading, the local currency appreciated to 4.0180/0380 against the US dollar from Thursday’s close of 4.0365/0430, reflecting a broader regional trend as sentiment tilted in favour of Asian currencies.
Mohd Sedek Jantan, director of investment strategy at IPPFA Sdn Bhd, said the movement aligned with gains seen across the region, supported by a firmer Bloomberg Asia Dollar Index as markets reassessed the strength of the US economy.
"The move is broadly consistent with regional trends, as the Bloomberg Asia Dollar Index edged higher, signalling a wider recalibration in favour of Asian currencies as investors begin to question the resilience of the US labour market.
"This creates room for further ringgit appreciation, as any downside surprise in the NFP would likely prompt a modest repricing of Federal Reserve expectations, easing yield support for the dollar," he said.
The upcoming US non-farm payrolls data is expected to play a pivotal role in shaping expectations around the Federal Reserve, particularly if signs of labour market softening emerge.
Despite the near-term optimism, Mohd Sedek cautioned that broader global dynamics continue to support the US dollar, particularly amid heightened geopolitical risks.
He noted that ongoing tensions involving the United States and Iran have reinforced safe-haven demand for dollar liquidity, potentially limiting the ringgit’s upside.
Beyond the US dollar, the ringgit also posted gains against other major currencies, strengthening versus the British pound, Japanese yen and euro in early trade.
The local currency similarly advanced against regional peers, including the Singapore dollar, Indonesian rupiah, Philippine peso and Thai baht, underscoring improved sentiment towards emerging Asian markets.
While short-term momentum favours the ringgit, analysts suggest that its trajectory will remain closely tied to external factors, particularly US economic data and evolving geopolitical developments. - April 3, 2026
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