Ringgit strengthens as weak US jobs data dampens Fed rate hike expectations
The Malaysian ringgit started the week on a stronger note against the US dollar, benefiting from softer expectations of a Federal Reserve interest rate hike. The shift came after weaker-than-expected US jobs data weighed on the dollar's strength.
At the opening bell on Monday, the ringgit climbed to 4.0805/0870 per dollar, up from Friday's close of 4.0820/0870. This rise follows the release of the latest nonfarm payrolls (NFP) report, which showed US job creation fell short of forecasts, with just 29,000 new jobs added in September compared to the estimated 90,000.
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted the weaker-than-anticipated jobs data as a key factor influencing the ringgit's performance. The reduced likelihood of a Fed rate hike has contributed to the greenback's decline, supporting the ringgit's upward movement.