Ringgit slips to 4.07 against US dollar amid expectations of stronger US jobs data

KUALA LUMPUR, Nov 2 - The Malaysian ringgit slipped to 4.0695/0735 against the US dollar on Monday as expectations of stronger US economic data bolstered the greenback. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid stated that the upcoming October US Nonfarm Payrolls (NFP) release, expected on Nov 6, is projected to show an increase of 65,000 jobs, compared to the prior month's 29,000.

Afzanizam also noted that the unemployment rate is anticipated to remain at 4.2 percent. A positive economic outlook may suggest the Federal Reserve could commence its rate tightening cycle in December, increasing the odds of a Fed Fund Rate hike to 71.1 percent from 78.9 percent a month ago. Higher odds of rate tightening could benefit the US dollar, according to Afzanizam.

Meanwhile, other regional currencies were mostly in decline against the US dollar due to concerns about potential military action against Iran following the mid-term US elections tomorrow. The ringgit's trading range moved from RM4.057 in the early morning session to RM4.072 by the afternoon. Comparative to major currencies, the ringgit weakened against the British pound, euro, and slipped slightly against the Japanese yen.

However, it showed minor improvement against the yen. The ringgit also experienced a decline against key Asean currencies, including the Singapore dollar, Thai baht, Indonesian rupiah, and Philippine peso.