The ringgit opened higher against the US dollar on Monday as weaker-than-expected US employment data eased expectations of further interest rate hikes by the US Federal Reserve (Fed), putting pressure on the greenback.
At 8am, the local currency rose to 4.0805/0870 against the US dollar from Friday’s close of 4.0820/0870.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the latest non-farm payrolls (NFP) report showed weaker-than-expected job creation in the US, with only 29,000 jobs added in September compared with the consensus estimate of 90,000.
“The US unemployment rate also edged up to 4.2 per cent in September after remaining at 4.1 per cent for the previous two months.
“This suggests that the US Fed may decide against raising interest rates at its upcoming meeting from October 27 to 28,” he told Bernama.
At the opening, the ringgit was stronger against several major currencies.
It rose against the Japanese yen to 2.5867/5910 from 2.5906/5941 at Friday’s close and strengthened against the euro to 4.5918/5991 from 4.5927/5983.
However, the ringgit weakened against the British pound to 5.4030/4116 from 5.3927/3993.
Against other regional currencies, the ringgit traded mixed.
The local currency strengthened against the Singapore dollar to 3.1891/1945 from 3.1908/1952 and gained against the Thai baht to 12.1516/1764 from 12.1579/1778.
It was unchanged against the Philippine peso at 6.52/6.54 and the Indonesian rupiah at 228.2/228.6.
