Malaysian Ringgit Strengthens as US Job Data Softens

The Malaysian ringgit experienced volatility against the US dollar between July 1 and July 3, 2026, ultimately strengthening as US labor market data softened. On July 1, the ringgit depreciated to 4.0920/4.0965, pressured by expectations of Federal Reserve rate hikes following a JOLTS report that showed May job openings exceeded consensus estimates.

Mohd Afzanizam Abdul Rashid, Chief Economist of Bank Muamalat Malaysia Bhd, noted a shift in momentum by July 2, as the ringgit appreciated to 4.0780/4.0830. This recovery followed comments from Federal Reserve Chairman Kevin Warsh, who declined to provide forward guidance on interest rates at the European Central Bank Forum in Sintra, Portugal, signaling that the central bank remains data-dependent.

The ringgit continued its ascent on July 3, closing at 4.0690/4.0735. This gain was triggered by the release of US Nonfarm Payrolls data showing only 57,000 jobs were added in June, significantly missing the projected 114,000. Lower revisions to April and May figures further suggested a softening labor market, fueling investor belief that the Federal Reserve would not rush to increase benchmark interest rates. While the ringgit generally gained against regional currencies and the greenback during this period, its performance against the euro and British pound remained mixed.