Accra:The ringgit is anticipated to gain against the US dollar in the coming week, trading between RM4.07 and RM4.08. This potential strengthening is linked to weaker-than-expected US employment figures, which may lead to the US Federal Reserve opting out of a rate hike this month.

According to BERNAMA News Agency, Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the US non-farm payrolls increased by only 29,000 jobs in September, falling short of the market's expectation of 89,000. Additionally, the unemployment rate in the US rose to 4.2 percent, which could pressure the US dollar and support the ringgit.

Attention next week will be directed towards Malaysia's Budget 2027, scheduled for presentation on October 9. Market participants are expected to evaluate the government's fiscal deficit target for 2027 and any potential adjustments to this year's deficit target of 3.5 percent of GDP. The government's total revenue increased by 12 percent to RM165.4 billion in the first half of 2026, largely due to a 32 percent rise in sales and service tax collection. However, operating expenditure also rose by 14.4 percent to RM94.6 billion, driven by a significant 61.2 percent increase in subsidies.

On a Friday-to-Friday basis, the ringgit weakened against the US dollar to 4.0820/0870 from 4.0715/0765 the previous week. The local currency showed mixed performance against other major currencies, strengthening against the euro but depreciating against the British pound and Japanese yen. It also traded mixed against ASEAN currencies, slipping against the Singapore dollar and Indonesian rupiah, while appreciating against the Thai baht and remaining stable against the Philippine peso.