Weaker US Jobs Data Lifts Ringgit Against the Dollar
The Malaysian ringgit strengthened against the US dollar on Monday, driven by weaker-than-expected US jobs data that dampened expectations of a Federal Reserve interest rate hike. The greenback softened as a result, benefiting the ringgit, which climbed to 4.0805/0870 from its previous close of 4.0820/0870.
Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, noted that the latest nonfarm payrolls report showed a significant slowdown in US job creation. Only 29,000 jobs were added in September, far below the anticipated 90,000. This shortfall raised concerns about the US labor market's resilience.
The US unemployment rate also ticked up to 4.2 percent in September, up from 4.1 percent in the previous two months. This slight increase further weakened the case for aggressive Federal Reserve tightening, contributing to the ringgit’s gain against the US dollar.