Weaker US Jobs Data Boosts Ringgit Against 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. The greenback weakened, pushing the ringgit up to 4.0805/0870 from Friday’s close of 4.0820/0870.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid noted that the September nonfarm payrolls (NFP) report showed only 29,000 jobs added, far below the estimated 90,000. The US unemployment rate also rose slightly to 4.2% from 4.1%, suggesting the Fed may skip a rate hike at its October 27-28 meeting.
The ringgit gained ground against most major currencies, including the Japanese yen and the euro, but lost value against the British pound. Regionally, it strengthened against the Singapore dollar and Thai baht but remained unchanged against the Philippine peso and Indonesian rupiah.