The Malaysian ringgit closed marginally higher against the US dollar, extending a recovery that has gained momentum across Asian trading sessions.
The currency's strength was underpinned by softer-than-expected US inflation data, which has significantly reduced market expectations for a near-term interest rate hike by the Federal Reserve.
This development follows a broader shift in sentiment that began earlier in the week.
The ringgit had already opened firmer on Friday after the release of weaker-than-expected US non-farm payrolls data for June, signaling a cooling labor market that further diminished the case for aggressive monetary tightening in the United States.
The convergence of soft inflation and labor data has triggered a repricing of rate expectations, providing a tailwind for emerging market currencies.
The ringgit's move is part of a wider positive sentiment wave across Asian currencies, as investors adjust portfolios in response to a potentially more dovish US monetary policy outlook.