Ringgit Weakens Amid Strong US Jobs Data and Upcoming Inflation Report

The ringgit closed slightly lower against the US dollar on Monday after the United States released strong non-farm payrolls (NFP) data, exceeding the consensus forecast of 55,000 with a total of 162,000 in August.

This unexpected increase has put pressure on the Malaysian currency, which inched down to 4.0440/0485 against the US dollar from last Friday's close of 4.0425/0465.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the upcoming US consumer price index (CPI) report, due on Friday, will be a significant factor in shaping market sentiment as it will influence the Federal Open Market Committee's decision on the Fed Funds Rate.

The ringgit also ended lower against a basket of major currencies, including the euro, British pound, Japanese yen, Philippine peso, Singapore dollar, Thai baht, and Indonesian rupiah.