Ringgit weakens as robust US economic data bolsters dollar

The ringgit opened lower in early trading as robust US economic data reinforced the appeal of dollar-denominated assets among investors. The stronger-than-expected US economic figures pointed to continued growth momentum in the world's largest economy, prompting traders to shift positions toward the greenback.

Market watchers noted that the positive US data release supported the dollar across major currency pairs, with the ringgit among the regional currencies feeling the downward pressure. The shift in investor sentiment reflected a broader reassessment of economic conditions and interest rate expectations, with the strength of American economic activity taking centre stage.

Analysts cautioned that currency movements would likely remain sensitive to incoming US economic data in the coming sessions. The ringgit's performance would also depend on regional developments and broader sentiment toward emerging market currencies as investors balanced growth prospects against currency volatility.

Traders said the local currency's weakness was consistent with recent patterns observed across Asian currencies, as the dollar continued to attract safe-haven flows amid global economic uncertainties. Market participants would be watching for additional economic releases and monetary policy signals that could influence the ringgit's trajectory in the near term.