Ringgit to trade firmer against US dollar next week, ahead of US labour data
KUALA LUMPUR: The ringgit is expected to trade firmer next week following the US labour market data, an analyst said.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors would pay attention on two key developments, namely the Nonfarm Payrolls (NFP) and the unemployment rate — and the expiry of the 90-day pause on US tariff implementation.
"The labour market data will be pivotal in shaping expectations for the US Federal Reserve's policy direction, with greater emphasis likely to shift towards supporting maximum employment
"With signs of a softening global and US economy emerging, investor sentiment is expected to remain cautious heading into the second half of 2025," he told Bernama.
Mohd Afzanizam said the US job market is showing moderation, with the monthly average NFP standing at 123,800 in the first five months of 2025, down from 179,600 in the same period last year.
The unemployment rate had risen from 4.0 per cent in January to 4.2 per cent in March this year, he added.
On the currency front, he said the ringgit has shown resilience this week, rebounding from RM4.2948 against the US dollar on June 23 to RM4.2327 on June 26, marking a 1.5 per cent appreciation.
"With the US Dollar Index (DXY) on a softer trajectory, we anticipate the ringgit could trade firmer around RM4.22 to RM4.23 in the coming week," he said.
The ringgit ended the week higher against the greenback, closing at 4.2300/2355 on Thursday from 4.2505/2565 last Friday.
The local note traded lower against a basket of major currencies.
The ringgit depreciated vis-à-vis the Japanese yen to 2.9359/9399 from 2.9245/9289 at last Friday's close, shed against the British pound to 5.8141/8217 from 5.7356/7437 previously, and slid versus the euro to 4.9597/9661 from 4.9000/9069 at the end of last week.
The ringgit also traded lower against Asean currencies.
The local note dropped against the Singapore dollar to 3.3192/3240 on Thursday from 3.3088/3140 last Friday, and weakened versus the Thai baht to 13.0254/0488 from 12.9727/9969 last week.
It fell versus the Indonesian rupiah to 260.9/261.4 on Thursday from 259.2/259.7 last Friday and was marginally lower against the Philippine peso at 7.47/7.49 compared to 7.43/7.45 previously.
The market was closed on Friday for the Maal Hijrah public holiday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
26 minutes ago
- The Star
Fahmi: Review not rushed
Unity initiative: Fahmi (second from right) with participants of the Nanba programme. He is flanked by director-general of the Community Communication Department (J-Kom) Datuk Ismail Yusop (left) and Batu MP P. Prabakaran. — Bernama KUALA LUMPUR: The government's decision to review the 13th Malaysia Plan (13MP) is not a hasty reaction but one that has gone through discussions over the past two weeks, says Communications Minister Datuk Fahmi Fadzil. He said the discussions began with a draft presented by the Economy Ministry secretary-general to the Cabinet. 'We've actually discussed this. In my press conference a few weeks ago, I mentioned that the Prime Minister (Datuk Seri Anwar Ibrahim) had issued a directive to review the draft presented by the Economy Ministry secretary-general. 'As you know, any policy, programme or decision must first be presented at a Cabinet meeting. 'So, on Friday last week, the Prime Minister requested that all ministries review the draft and provide their feedback to the Economy Ministry,' he said at a press conference after launching the Nadi Aspirasi Nasional Bersama Anak Muda programme organised by the Community Communications Department (J-KOM) yesterday. Fahmi, who is also the government spokesman, said a special Cabinet meeting was held last Monday to review feedback from all ministries. 'During the meeting, it was determined that several issues raised by the ministries require further consideration by the Economy Ministry in the preparation of the 13MP document.' 'That was one of the reasons why, in last Wednesday's Cabinet meeting it was decided that Finance Minister II Datuk Seri Amir Hamzah would take on the duties and functions of the Economy Minister,' he said, Bernama reported. Earlier, former economy minister Datuk Seri Rafizi Ramli was reported to have questioned the government's move to review the 13MP, calling it a hasty response to social media criticism. This followed Chief Secretary to the Government Tan Sri Shamsul Azri Abu Bakar's announcement on Friday that Amir Hamzah had been tasked with 'reviewing and revamping' the 13MP while concurrently performing the duties and functions of the Economy Minister, effective immediately. The 13MP is scheduled to be tabled in Parliament on July 31.
Barnama
an hour ago
- Barnama
2025 Eco Forum Global Guiyang to Kick off in July Spotlighting Global Green Transformation
GUIYANG, China, June 30 (Bernama) -- Recently, the Information Office of Guizhou Provincial Government in China announced that, with the approval of the State Council, Eco Forum Global Guiyang 2025 will be held in Guiyang from July 5 th to 6 th . This 2-day-forumn will be hosted by the People's Government of Guizhou Province. The theme of this year's forum is "Harmonious Coexistence between Humans and Nature -- Discussing Global Development and Green Transformation". The expected number of attendees is around 800, and various preparatory work is currently progressing orderly. As the only national and international forum in China themed eco-civilization, Eco Forum Global Guiyang has been successfully held for 12 sessions since its inception, attracting widespread attention from the international community. This year's forum aims to create an international event that integrates concept exchanges, practice sharing, and pragmatic cooperation through activities such as opening ceremony, thematic forums, off-site visits, promotional displays, green investment promotion, and the release of new environmental protection products and technologies.
New Straits Times
an hour ago
- New Straits Times
Japan factory output rises, but slower than expected as US tariffs threat looms
TOKYO: Japanese factory output rose at a slower-than-expected pace in May, government data showed on Monday, as sweeping US tariffs were threatening to derail the country's already fragile economic recovery. Industrial output rose 0.50 per cent in May from the previous month, data from the Ministry of Economy, Trade and Industry (METI) showed, less than a median market forecast for a 3.50 per cent rise. Manufacturers surveyed by METI expect seasonally adjusted output to rise 0.30 per cent in June and fall 0.70 per cent in July. "It's necessary to pay close attention to the worsening trend in sentiment (among manufacturers on) production planning," a METI official said. Tokyo is scrambling to find ways to get Washington to exempt its automakers from automobile industry-specific tariffs of 25 per cent, which are severely impacting the country's manufacturing sector. Japan also faces a 24 per cent "reciprocal" tariff rate starting on July 9 unless it can negotiate a deal with Washington. Motor vehicle production went up by 2.50 per cent and shipments jumped 10.50 per cent in May from a month prior, the data showed. Some manufacturers had moved up their shipments because of the tariffs, the METI official said. The number of firms mentioning that the tariffs had an impact on their production or shipment increased slightly from April, the official said. "Exports are likely to remain sluggish and production indices are expected to continue to show weakness in response to the global economic slowdown," said Yutaro Suzuki, an economist at Daiwa Securities. The hit from US tariffs could derail a lacklustre recovery in Japan's economy, the world's fourth largest. The economy shrank in January–March, the first contraction in a year, due to subdued private consumption. The US tariffs also complicate the Bank of Japan's efforts to raise still-low interest rates and reduce a balance sheet that has ballooned to roughly the size of Japan's economy. "The poor run of data will keep the central bank on hold for the time being," said Stefan Angrick, head of Japan and Frontier Markets Economics at Moody's Analytics. "Until there's progress on US-Japan trade, Japan's manufacturers will remain in the doldrums, with few clear sources of support."
