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THE Malaysian ringgit opened lower against the US dollar on Friday, weighed down by strength in the greenback as investors awaited the release of US non-farm payroll data later in the day.
At 8 am, the local currency was quoted at 4.0650/0750 against the US dollar, down from Thursday’s closing level of 4.0580/0650.
Mohd Sedek Jantan, director of investment strategy and country economist at IPPFA Sdn Bhd, said the US dollar’s resilience is largely underpinned by strong Treasury yields rather than risk aversion.
US Treasury yields remain anchored in the 4.1–4.2 per cent range, suggesting a market anticipating a controlled slowdown in the US economy rather than a sudden contraction.
“The first full trading week of 2026 began on a strong footing, but momentum has been interrupted by a rise in geopolitical uncertainty, prompting a tactical rotation into safe-haven currencies,” he told Bernama.
That shift, he added, has temporarily pressured high-beta Asian currencies, leaving the ringgit on the defensive despite generally constructive global risk conditions.
Mohd Sedek noted that US labour market dynamics, shaped by tighter immigration policies and slower labour-supply growth, have reduced the likelihood that a modest payrolls print would trigger recessionary concerns.
“Recent Job Openings and Labour Turnover Survey (JOLTS) and ADP employment data failed to move markets materially. Instead, investor focus has shifted to the unemployment rate, which will determine whether the US Federal Reserve can remain on hold,” he said.
Friday morning trading showed the ringgit broadly weaker against a basket of major currencies. It eased to 2.5907/5972 versus the Japanese yen from Thursday’s close of 2.5888/5935, and fell against the British pound to 5.4613/4748 from 5.4535/4630. However, it gained slightly against the euro to 4.7386/7502 from 4.7389/7471.
Regionally, the ringgit also retreated against several ASEAN peers. It weakened against the Indonesian rupiah to 241.9/242.6 from 241.5/242.1 and declined versus the Singapore dollar to 3.1627/1710 from 3.1602/1659. The local note fell against the Thai baht to 12.9265/9645 from 12.8731/9007 and against the Philippine peso to 6.86/6.89 from 6.85/6.87 previously.
Market participants are now closely watching the US payroll figures, with the unemployment rate expected to play a key role in guiding expectations for Federal Reserve policy and the ringgit’s near-term trajectory. - January 9, 2025