Kuala Lumpur: The ringgit continues to strengthen against the US dollar on Friday, as the United States (US) economic data points to further weakening amid concerns over tariffs and fiscal policies, an analyst said. At 8 am, the local note improved to 4.2140/2335 against the greenback from Thursday's close of 4.2245/2295. According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid stated that the US Dollar Index (DXY) slipped by 0.05 percent to 98.741 points as US economic data showed signs of further slowdown. He noted that US Initial Jobless Claims rose to 247,000 last week, marking the second consecutive week of increases, while Continuous Jobless Claims remained elevated at 1.904 million for the week ending May 24, 2025. "The focus tonight will be on the Nonfarm Payroll (NFP), which is expected to reach 125,000 in May (consensus) from the previous month's print of 177,000," Mohd Afzanizam told Bernama. He explained that emerging market currencies, includi ng the ringgit, have been appreciating against the US dollar due to a weaker US economic outlook and continued concerns over tariffs and fiscal policies. Mohd Afzanizam emphasized that the prevailing market condition defied norms because the US dollar has traditionally been deemed a safe-haven currency. "Traders and investors would normally flock to the US dollar to seek protection against extreme volatility," he said. He further elaborated that the market will remain cautious of US tariff policies and the recent fallout between US President Donald Trump and Elon Musk over the government's budgetary position and its impact on the global economy, which may lead to further noise in market sentiments. "At the end of the day, it is about prescribing a good policy and implementing it promptly to see the outcome," he remarked. Mohd Afzanizam concluded that the ringgit may continue to climb in light of the prevailing condition, potentially reaching RM4.20 in the near term. At the opening, the ringgit traded mostl y higher against a basket of major currencies, appreciating against the Japanese yen and the British pound, though it slid versus the euro. The local currency also traded higher against most of its ASEAN peers, gaining versus the Singapore dollar and marginally higher against the Indonesian rupiah. It surged against the Thai baht and edged up against the Philippine peso, showcasing a broad-based strengthening in the region.