Ringgit Slips Against USD Amid Strong US Jobs Data and Upcoming CPI Report

The Malaysian ringgit closed slightly lower against the US dollar on Monday following strong non-farm payrolls data from the United States. The US jobs report showed a gain of 162,000 in August, exceeding the consensus forecast of 55,000.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid attributed the market's attention to the upcoming US consumer price index (CPI) report due on Friday. The CPI data will influence the Federal Open Market Committee's (FOMC) decision on the Fed Funds Rate.

The ringgit weakened against a basket of major currencies, including the euro, British pound, Japanese yen, Philippine peso, Singapore dollar, Thai baht, and Indonesian rupiah. Dr Afzanizam warned that the US CPI report will be crucial in shaping market sentiment ahead of the FOMC's next meeting on September 15-16.