Ringgit opens higher as weaker US jobs data weighs on greenback

The Malaysian ringgit began the trading day on an upward trajectory on Monday, buoyed by a more subdued outlook for a potential interest rate hike from the US Federal Reserve (Fed) following disappointing US jobs data. By 8am, the ringgit had climbed to 4.0805/4.0870 against the US dollar, marking an improvement from Friday’s close of 4.0820/4.0870.

Afzanizam Rashid, the chief economist at Bank Muamalat Malaysia Bhd, interpreted the latest nonfarm payrolls (NFP) report as a sign that job creation in the US had fallen short of expectations, with only 29,000 jobs added in September, compared to the anticipated 90,000. The US unemployment rate also edged up slightly to 4.2% in September, up from 4.1% in the previous two months, further fueling speculation that the Fed might refrain from raising interest rates at its forthcoming meeting on October 27-28.

The ringgit demonstrated strength against various major currencies at the opening bell, including the Japanese yen, euro, and Singapore dollar, while showing relative weakness against the British pound. Its performance against regional currencies such as the Thai baht and the Philippine peso was mixed, with some gains and losses offsetting each other.