Ringgit opens higher against US$ as weaker US jobs data weighs on greenback
The Malaysian ringgit strengthened against the US dollar following weaker-than-expected US jobs data, which reduced expectations for Federal Reserve interest rate hikes. The currency also saw mixed performance against other major and regional currencies.
Why it matters
Fluctuations in the US labor market have direct implications for global currency valuations and central bank monetary policy decisions.
KUALA LUMPUR: The ringgit opened higher against the US dollar on Monday, following reduced expectations of a United States Federal Reserve (Fed) interest rate hike amid weaker-than-expected US jobs data, which is weighing on the greenback.
At 8 am, the ringgit rose to 4.0805/0870 against the US dollar from Friday’s close of 4.0820/0870.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest nonfarm payrolls (NFP) report showed that US job creation was lower than expected, with only 29,000 jobs added in September versus the consensus estimate of 90,000.
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