Ringgit Boosts Against Dollar on Weaker US Jobs Data

The Malaysian ringgit started strong on Monday against the US dollar due to weaker-than-expected non-farm payrolls (NFP) data released in the United States.

The NFP for July fell by 23,000 jobs, contradicting a consensus estimate of 88,000 new hires. This unexpected decline also saw the Labour Force Participation Rate continue its downward trend for eight consecutive months at 61.4%, while Average Hourly Earnings grew at a moderate pace to 3.2% in July.

Bank Muamalat Malaysia Bhd chief economist Afzanizam Rashid stated that these numbers suggest the US labour market is not entirely robust, which has lowered the odds for an interest rate hike at the September Federal Open Market Committee (FOMC) meeting from 57% to 43.9%.

The ringgit's performance against other major currencies was mixed. It depreciated against the Japanese yen, euro, and British pound but held steady against the Philippine peso and Indonesian rupiah.