Upcoming US indicators include the nonfarm payrolls, consumer price index (CPI), personal consumption expenditures and the University of Michigan consumer sentiment index.
Bank Muamalat Malaysia Bhd chief economist Afzanizam Abdul Rashid told Bernama the ringgit continued to appreciate as the US Dollar Index (DXY) slipped 0.05% to 98.352 points.
“Traders and investors remain constructive on the ringgit, although they are cautious ahead of this week’s data releases and remarks from Federal Reserve officials,” he said.
AmBank (M) Bhd said in a note today that the risk of a pullback remained high as markets consolidated positions ahead of US data risks.
“A sustained move below RM4.10 would require a convincing downtrend in US inflation and employment to be established by the end of the week,” it said.
Last Friday, the ringgit hovered near the 4.09 level, its strongest in four years and seven months, supported by positive Malaysian economic data.
Kenanga Investment Bank Bhd said investors would focus on November’s US labour report due on Tuesday, with consensus expecting nonfarm payrolls of 50,000 and the unemployment rate at 4.4%.
It added that downside risks persist due to the prolonged US government shutdown, while November’s inflation report is also due, with core CPI likely to hold near 3%.
“A weaker US labour print alongside steady inflation would likely extend US dollar softness.
“With seasonal US dollar weakness reinforcing these trends, the DXY could slip below 98.0.
“A move below RM4.10 against the US dollar this week appears increasingly likely, bringing the ringgit closer to our end-2025 forecast of RM4.08,” it added.
At 6pm, the ringgit edged up to 4.0930/4.0980 against the greenback, from 4.0945/4.1005 at last Friday’s close.
At the close, the ringgit, however, traded lower against a basket of major currencies.
It weakened versus the British pound to 5.4793/5.4860 from 5.4789/5.4869 at last Friday’s close, eased against the Japanese yen to 2.6410/2.6444 from 2.6264/2.6304 and slipped versus the euro to 4.8064/4.8123 from 4.8037/4.8107.
The local currency traded mixed against Asean peers.
It depreciated against the Singapore dollar to 3.1746/3.1787 from 3.1701/3.1750, fell versus the Thai baht to 13.0201/13.0422 from 12.9589/12.9845, edged up against the Indonesian rupiah to 245.5/245.9 from 245.9/246.4, and was flat against the Philippine peso at 6.93/6.94.