KUALA LUMPUR, Oct 3 — The ringgit is expected to strengthen against the US dollar next week, trading in the range of RM4.07 to RM4.08, as weaker-than-expected US employment data could reinforce expectations that the US Federal Reserve might skip a rate hike this month.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the latest US labour market data could weigh on the greenback and provide support for the ringgit.
He pointed out that US non-farm payrolls (NFP) rose by only 29,000 jobs in September, well below market expectations of 89,000, while the unemployment rate increased to 4.2 per cent.
Mohd Afzanizam said the focus next week would be on the tabling of Malaysia’s Budget 2027 on Oct 9, with market participants likely to assess the government’s fiscal deficit target for 2027 and whether there would be any adjustment to this year’s deficit target of 3.5 per cent of gross domestic product (GDP).
