The Malaysian ringgit opened firmer against the US dollar on Friday, extending a recovery that began in Asian trading hours after the release of weaker-than-expected US non-farm payrolls data for June.
The currency’s rebound marks a shift in sentiment for the Southeast Asian asset, which had been under pressure in recent sessions amid broader dollar strength and regional risk-off flows.
The firmer opening reflects immediate market repricing of the US dollar’s trajectory rather than domestic Malaysian fundamentals.
The move in the ringgit is part of a wider emerging-market rally triggered by the soft US jobs print.
The data reinforced expectations that the Federal Reserve may adopt a more cautious approach to interest rate policy, potentially accelerating the timeline for rate cuts.
As the dollar softened on the back of these shifting rate cut hopes, EM currencies including the ringgit found support.