Weak US jobs data gives ringgit a shot at RM4.07 next week

The Malaysian ringgit is poised to strengthen against the US dollar in the upcoming week, with a potential range of RM4.07 to RM4.08, according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid. This is due to weaker-than-expected US employment data, which could signal that the US Federal Reserve may postpone a rate hike this month.

The latest US labor market figures indicated that non-farm payrolls (NFP) grew by a mere 29,000 jobs in September, much lower than the anticipated 89,000, and the unemployment rate rose to 4.2 per cent. The upcoming Malaysia's Budget 2027, scheduled for October 9, will take center stage next week, with market participants likely to scrutinize the government's fiscal deficit target for 2027 and any potential adjustments to this year's 3.5 per cent GDP target.

While Malaysia's total revenue increased by 12 per cent to RM165.4 billion in the first half of 2026, propelled by a 32 per cent surge in sales and service tax collection, operating expenditure rose by 14.4 per cent to RM94.6 billion, driven by a 61.2 per cent jump in subsidies to RM38.0 billion. Market participants will closely monitor macroeconomic targets like GDP, inflation, and the fiscal deficit for 2027, given the lingering external risks next year.