Ringgit Strengthens as Weak US Jobs Data Curbs Fed Rate Hike Expectations

The Malaysian ringgit started the week stronger against the US dollar, benefiting from weaker-than-expected US jobs data that has reduced expectations of a Federal Reserve interest rate hike. At 8 am local time, the ringgit was trading at 4.0805/0870 per dollar, up from Friday’s close of 4.0820/0870.

Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the latest nonfarm payrolls report showed only 29,000 jobs were added in September, far below the forecasted 90,000. The US unemployment rate also rose slightly to 4.2% from 4.1%, suggesting the Fed may hold off on raising interest rates at its October 27-28 meeting.

Beyond the US dollar, the ringgit gained ground against the Japanese yen and euro but weakened against the British pound. Regionally, it strengthened against the Singapore dollar and Thai baht, while remaining unchanged against the Philippine peso and Indonesian rupiah.