Kuala lumpur: The ringgit ended firmer against the US dollar on Monday, extending gains after hovering near the 4.09 level last week, as investors remained constructive ahead of upcoming key US data. At 6 pm, the ringgit edged up to 4.0930/0980 against the greenback, from 4.0945/1005 at last Friday's close.
According to BERNAMA News Agency, upcoming US indicators include the Nonfarm Payrolls, Consumer Price Index (CPI), Personal Consumption Expenditures, and the University of Michigan Consumer Sentiment Index. Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid noted that the ringgit continued to appreciate as the US Dollar Index slipped 0.05 percent to 98.352 points. He added that traders and investors remain constructive on the ringgit, though cautiousness persists ahead of this week's data releases and remarks from Federal Reserve officials.
AmBank (M) Bhd highlighted in a note that the risk of a pullback remained high as markets consolidate positions ahead of US data risks. The bank elaborated that a sustained move below 4.10 would require a convincing downtrend in US inflation and employment to be established by the end of the week.
Last Friday, the ringgit hovered near the 4.09 level, its strongest in four years and seven months, supported by positive Malaysian economic data. Kenanga Investment Bank Bhd mentioned that investors would focus on November's US labour report due on Tuesday, with consensus expecting Nonfarm Payrolls of 50,000 and the unemployment rate at 4.4 percent. The bank added that downside risks persist due to the prolonged US government shutdown, while November's inflation report is also due, with core CPI likely to hold near 3.0 percent.
Kenanga further stated that a weaker US labour print alongside steady inflation could extend US dollar softness. With seasonal US dollar weakness reinforcing these trends, it is anticipated that the DXY could slip below 98.0. A move below 4.10 against the US dollar this week appears increasingly likely, bringing the ringgit closer to the end-2025 forecast of 4.08.
At the close, the ringgit traded lower against a basket of major currencies. It weakened versus the British pound to 5.4793/4860 from 5.4789/4869 at last Friday's close, eased against the Japanese yen to 2.6410/6444 from 2.6264/6304, and slipped versus the euro to 4.8064/8123 from 4.8037/8107. The local currency traded mixed against ASEAN peers. It depreciated against the Singapore dollar to 3.1746/1787 from 3.1701/1750, fell versus the Thai baht to 13.0201/0422 from 12.9589/9845, edged up against the Indonesian rupiah to 245.5/245.9 from 245.9/246.4, and was flat against the Philippine peso at 6.93/6.94.