Ringgit Rises on Hopes of US Rate Hike Following Strong NFP Data
The Malaysian ringgit opened slightly higher against the US dollar on Monday, driven by expectations of a potential US interest rate hike following stronger-than-expected US non-farm payrolls (NFP) data. According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, the higher NFP figures suggest the US Federal Reserve is likely to raise its benchmark interest rate at the upcoming Federal Open Market Committee meeting on September 15-16.
The ringgit inched up to 4.0415/0500 against the greenback from last Friday's close of 4.0425/0465, while Asian currencies may face a choppy trading session today with the ringgit potentially trading in a wider margin around 4.04 to 4.06 against the US dollar.
Quintex Intel global strategist Stephen Innes noted that the higher energy prices could provide some support to Malaysia given its net energy export status, and the country's strengthening position in the regional artificial intelligence and semiconductor supply chain.