Ringgit strengthens as weak US jobs data dampens rate hike expectations

The Malaysian ringgit started the week stronger against the US dollar, benefiting from weaker-than-expected US jobs data that reduced expectations of a Federal Reserve interest rate hike. At 8am on Monday, the ringgit climbed to 4.0805/0870 against the greenback, up from Friday's close of 4.0820/0870.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the latest nonfarm payrolls report showed only 29,000 jobs added in September, far below the estimated 90,000. The US unemployment rate also rose slightly to 4.2%, suggesting the Fed may skip a rate hike at its October 27-28 meeting.

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