Ringgit Rises on Strong NFP Data and Rate Hike Expectations

The Malaysian ringgit began Monday trading slightly higher against the US dollar due to expectations of a potential US interest rate hike following stronger-than-expected non-farm payrolls data.

The local currency inched up to 4.0415/4.0500 against the greenback from last Friday's close of 4.0425/4.0465.

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

Afzanizam noted that 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.