Ringgit Opens Higher Against US Dollar on Weak US Jobs Data

The ringgit opened higher against the US dollar on Monday as weaker-than-expected US employment data reduced expectations of a Federal Reserve interest rate hike, weighing on the greenback.

At 8am, the ringgit was quoted at 4.0805/0870 against the US dollar, compared with Friday’s close of 4.0820/0870.

Ringgit Gains as Weak US Jobs Data Weighs on Greenback

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest nonfarm payrolls report showed US job creation had fallen well short of expectations, with only 29,000 jobs added in September against a consensus forecast of 90,000.

He said the US unemployment rate also edged up to 4.2 per cent in September, from 4.1 per cent over the previous two months.

“These developments suggest the Fed may decide not to raise interest rates at its upcoming meeting on Oct 27-28,” he told Bernama.

The ringgit also strengthened against the Japanese yen and euro at Monday’s opening, but weakened against the British pound.

Against regional currencies, the local note gained against the Singapore dollar and Thai baht, while it was unchanged against the Philippine peso and Indonesian rupiah.

The ringgit was quoted at 3.1891/1945 against the Singapore dollar and 12.1516/1764 against the Thai baht.