Ringgit Buoys on Strong NFP Data and Fed Rate Hike Expectations

The Malaysian ringgit opened slightly higher against the US dollar on Monday, influenced by expectations of a potential US interest rate hike following stronger-than-expected US non-farm payrolls (NFP) data.

At 8 am, the local currency rose to 4.0415/0500 against the greenback from last Friday's close of 4.0425/0465.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the higher-than-expected NFP suggests the US Federal Reserve (Fed) is likely to raise its benchmark interest rate at the upcoming Federal Open Market Committee (FOMC) meeting on Sept 15-16.

The NFP came in at 162,000 in August, well above the consensus forecast of 55,000, while July's figure was revised up to 21,000 from the initial estimate of 23,000.