The ringgit opened almost unchanged against the US dollar on Wednesday morning as market participants stayed on the sidelines ahead of crucial United States labour market figures.
At 8am, the local unit stood at 3.9220/9345 versus the greenback, compared with Tuesday’s close of 3.9220/9260, reflecting cautious sentiment in currency markets.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the US Dollar Index (DXY) inched up 0.05 per cent to 96.865 points, despite softer-than-anticipated US retail sales data. He said retail sales were flat month-on-month in December 2025, missing consensus forecasts of a 0.4 per cent increase, pointing to fragile consumer confidence and moderating spending trends.
In light of this, investors are closely monitoring the upcoming Nonfarm Payrolls (NFP) report and unemployment rate data. Market expectations are for 70,000 new jobs to be added, compared with 50,000 in December, while the jobless rate is projected to remain steady at 4.4 per cent.
Although global uncertainties continue to weigh on sentiment, Malaysia’s economic indicators have provided some reassurance. The ringgit ended higher against the US dollar on Tuesday, supported by encouraging domestic data.
Dr Mohd Afzanizam said high-frequency indicators remain constructive, with the Industrial Production Index (IPI) expanding 5.0 per cent in the fourth quarter of 2025, slightly up from 4.9 per cent in the preceding quarter. Meanwhile, the Index of Services grew 6.5 per cent, improving from 5.5 per cent previously — a sign that domestic demand and business activities are holding firm.
At the open, the ringgit traded mostly firmer against a basket of major currencies. It strengthened against the British pound to 5.3465/3635 from 5.3610/3664 and appreciated against the euro to 4.6621/6769 from 4.6731/6778. However, it slipped against the Japanese yen to 2.5382/5464 compared with 2.5264/5292 previously.
The local currency also showed a generally stronger tone against its ASEAN counterparts. It edged up against the Singapore dollar to 3.0989/1090 from 3.0994/1028 and advanced versus the Thai baht to 12.5420/5920 from 12.5866/6051.
The ringgit was little changed against the Philippine peso at 6.70/6.72 from 6.70/6.71 and remained steady against the Indonesian rupiah at 233.3/234.1 compared with 233.3/233.6 at Tuesday’s close.
