The ringgit opened stronger against most major and regional currencies on Thursday but edged lower against the US dollar as stronger-than-expected US economic data kept the greenback supported.
At 8am, the ringgit eased to 4.0790/0860 against the US dollar from Wednesday’s close of 4.0785/0820.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US economy grew 2.2% in the second quarter of 2026, above the 1.5% consensus forecast, while September ADP employment increased by 90,000 against expectations of 73,000.
“The Automatic Data Processing (ADP) employment change also rose to 90,000 in September, ahead of the market estimate of 73,000.
“Following this, the odds of a rate hike in October fell from more than 70 per cent to below 50 per cent currently,” he told Bernama.
The stronger labour market data has tempered expectations of another Federal Reserve rate hike in October, although the possibility remains open.
Mohd Afzanizam said the US Dollar Index initially fell to 101.05 before recovering to 101.37.
“On that note, markets have reassessed their stance towards a rate hike in October, but it is not totally off the table in light of the positive labour market data,” he said.
Meanwhile, the Federal Reserve’s preferred inflation gauge, the personal consumption expenditures price index, held at 3.4% in August, below the 3.7% consensus estimate.
Mohd Afzanizam expects the ringgit to trade between RM4.08 and RM4.09 today ahead of the release of US non-farm payrolls data on Friday.
Against major currencies, the ringgit strengthened against the euro to 4.6203/6282 from 4.6324/6363, the pound to 5.4104/4197 from 5.4162/4209 and the Japanese yen to 2.5887/5933 from 2.5969/5993.
Against ASEAN currencies, the ringgit rose against the Singapore dollar to 3.1917/1977 from 3.1943/1973 and the Thai baht to 12.1341/1611 from 12.1521/1666.
It was little changed against the Indonesian rupiah at 227.9/228.4 compared with 227.9/228.2 previously and remained unchanged against the Philippine peso at 6.51/6.52.
