Ringgit opens higher against US$
The Malaysian ringgit strengthened against the US dollar following weaker-than-expected US non-farm payroll data, which reduced the likelihood of an immediate interest rate hike. Despite this gain, the currency faced mixed performance against other major global and regional currencies.
Why it matters
Currency fluctuations impact international trade and investment, reflecting global market reactions to US economic indicators.
KUALA LUMPUR: The ringgit opened higher against the US dollar on Monday on weaker United States (US) non-farm payrolls (NFP) data.
At 8 am, the local currency strengthened to 4.0875/0925 against the greenback from Friday’s close of 4.0885/0930.
Speaking to Bernama, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam noted that NFP for July fell by 23,000, in stark contrast to a consensus estimate of 88,000 jobs created.
He also stated that the US Labour Force Participation Rate (LFPR) continued to decline for eight consecutive months to 61.4 per cent, while Average Hourly Earnings grew at a moderate pace to 3.2 per cent in July, suggesting that the US labour market is not entirely robust.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in