Ringgit strengthens as weak US jobs data pressures dollar
The Malaysian ringgit opened stronger against the US dollar on Monday, as weaker-than-expected US jobs data reduced expectations of a Federal Reserve interest rate hike. This shift weighed on the greenback, benefiting the ringgit. At 8 am, the ringgit climbed to 4.0805/0870 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 (NFP) report showed US job creation fell short of estimates. Only 29,000 jobs were added in September, far below the consensus forecast of 90,000.
The US unemployment rate also rose slightly to 4.2% in September, up from 4.1% in the previous two months. This data suggests a cooling labor market, which may influence the Fed’s monetary policy decisions moving forward.