Weaker US jobs data lifts Malaysian ringgit against the dollar
The Malaysian ringgit opened stronger against the US dollar on Monday, following weaker-than-expected US jobs data. This data reduced expectations of a Federal Reserve interest rate hike, putting downward pressure on the greenback.
At 8am, the ringgit climbed to 4.0805/4.0870 against the US dollar, up from Friday’s close of 4.0820/4.0870. Afzanizam Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the latest nonfarm payrolls report showed only 29,000 jobs added in September, far below the expected 90,000. The US unemployment rate also ticked up to 4.2%, suggesting the Fed may hold off on raising interest rates at its meeting on October 27-28.
The ringgit strengthened against most major currencies. It rose against the Japanese yen to 2.5867/2.5910 and the euro to 4.5918/4.5991, but weakened against the British pound to 5.4030/5.4116. Against regional currencies, the ringgit showed mixed results, gaining on the Singapore dollar and Thai baht but holding steady against the Philippine peso and Indonesian rupiah.