Ringgit Advances vs US Dollar Amid Weak US Data And Tariff Concerns
KUALA LUMPUR, June 6 (Bernama) -- The ringgit continues to strengthen against the US dollar on Friday, as the United States (US) economic data points to further weakening amid concerns over tariffs and fiscal policies, an analyst said.
At 8 am, the local note improved to 4.2140/2335 against the greenback from Thursday's close of 4.2245/2295.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US Dollar Index (DXY) slipped by 0.05 per cent to 98.741 points as US economic data showed signs of further slowdown.
"US Initial Jobless Claims rose to 247,000 last week, marking the second consecutive week of increases, while the Continuous Jobless Claims remained elevated to 1.904 million for the week ending May 24, 2025.
"The focus tonight will be on the Nonfarm Payroll (NFP), which is expected to reach 125,000 in May (consensus) from the previous month's print of 177,000," he told Bernama.
Mohd Afzanizam said emerging market currencies, including the ringgit, have been appreciating against the US dollar due to a weaker US economic outlook and continued concerns over tariffs and fiscal policies.
'The prevailing market condition defied the norms because the US dollar has been deemed a safe-haven currency. Traders and investors would normally flock to the US dollar to seek protection against extreme volatility,' he said.
Mohd Afzanizam said the market will continue to be wary of US tariff policies and the recent fallout between US President Donald Trump and Elon Musk over the government's budgetary position and its impact on the global economy, which may lead to further noise in the market sentiments.
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