The Malaysian ringgit finished the trading week on a higher note against the US dollar, capitalizing on a wave of positive sentiment across Asian currencies.
The move marks a continuation of the recovery that began earlier in the week, as traders digested the implications of the latest United States Nonfarm Payrolls (NFP) report.
The rebound follows a period of weakness for the ringgit, which had been under pressure in recent sessions.
The shift in direction was driven by a broader risk-on mood in Asian markets, where the softer-than-expected US jobs data for June reduced near-term expectations for aggressive Federal Reserve tightening.
This macro backdrop provided a tailwind for emerging market currencies, including the ringgit, allowing them to shed some of the recent losses.
According to New Straits Times, the ringgit’s strength at the close of the week was supported by this favourable regional sentiment.