An analyst reported that the ringgit remained well-supported and maintained its upward momentum for 11 consecutive days against the US dollar. This trend is driven by investors shifting their investments to the Asia-Pacific region following weaker US jobs data last Friday

As of 8 am today, the ringgit strengthened to 4.4930/5010 against the US dollar, compared to last Friday’s close of 4.4945/4995.

Reports indicate that the US unemployment rate rose to 4.3 percent in July, reaching its highest level in nearly three years, up from 4.1 percent in June.

Mohd Sedek Jantan, head of investment research at UOB Kay Hian Wealth Advisors, noted that the weak US jobs data led to a significant drop in US bond yields as investors moved towards the safety of fixed income.

The two-year Treasury yields dropped notably from 4.39 percent to 3.91 percent, the lowest since March 2023, causing the dollar index (DXY) to fall over one percent daily.

"The dovish tone from the Bank of England and the Federal Reserve is likely to sustain the demand for the ringgit," said Mohd Sedek Jantan, head of investment research at UOB Kay Hian Wealth Advisors.

Dr. Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, expects the ringgit to move towards RM4.40 against the US dollar, predicting a range between RM4.47 and RM4.48 today. He noted that the bullish US bond market indicates expectations of a steeper Fed Fund Rate drop.

The ringgit traded lower against major currencies and mixed against ASEAN currencies. It fell against the British pound, euro, and Japanese yen, while remaining nearly flat against the Indonesian rupiah and Philippine peso. It declined against the Singapore dollar and Thai baht.