Ringgit rises against U.S. dollar as weak jobs data spurs rate cut hopes

THE ringgit opened stronger against the US dollar on Friday, buoyed by a retreat in the greenback following weaker-than-expected jobs data in the United States, which has heightened expectations of an interest rate cut by the Federal Reserve.

At 8am, the Malaysian currency was quoted at 4.2065/2225 against the US dollar, an improvement from Thursday’s close of 4.2185/2240.

Bernama cited Bank Muamalat Malaysia Bhd’s Chief Economist Dr Mohd Afzanizam Abdul Rashid, saying while the latest US Consumer Price Index (CPI) met market expectations, the rise in jobless claims surprised investors.

“The CPI print was within expectations, clearing the path for the Federal Reserve to cut interest rates next week,” he said.

Initial jobless claims rose to 263,000 last week, exceeding the market forecast of 235,000.

The US August CPI rose by 2.9 per cent year-on-year, in line with consensus, up from 2.7 per cent in July.

Meanwhile, core CPI remained unchanged at 3.1 per cent for a second consecutive month, following a 2.9 per cent increase in June.

Despite gains against the US dollar, the ringgit was weaker against several major currencies. It declined to 2.8569/8680 against the Japanese yen from 2.8509/8548, and slipped to 5.7095/7312 against the British pound from 5.6954/7028. Against the euro, the local note fell to 4.9351/9538 from 4.9293/9357.

Performance against ASEAN currencies was mixed.

The ringgit edged higher to 255.5/256.6 against the Indonesian rupiah from 256.2/256.7, and firmed to 3.2817/2945 versus the Singapore dollar from 3.2829/2874. It also strengthened slightly to 7.35/7.39 against the Philippine peso from 7.37/7.39.

However, the local note weakened against the Thai baht, falling to 13.2576/3156 from 13.2432/2663 previously. - September 12, 2025