The ringgit opened higher against the US dollar on Monday, supported by weaker-than-expected US non-farm payrolls (NFP) data that pointed to a softer labour market, Bernama reported.
At 8 am, the local currency strengthened to 4.0875/0925 against the greenback from Friday’s close of 4.0885/0930.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said US NFP for July fell by 23,000, sharply contrasting with the consensus estimate of 88,000 jobs created.
He said the US Labour Force Participation Rate (LFPR) also continued to decline for the eighth consecutive month to 61.4%, while Average Hourly Earnings grew at a moderate pace of 3.2% in July, indicating that the US labour market remained less robust.
As a result, the odds of an interest rate hike at the September Federal Open Market Committee (FOMC) meeting fell to 43.9% from 57% before the NFP report.
“Still, the uncertainties surrounding the reopening of the Strait of Hormuz remain the wildcard, which would keep market sentiment in check.
“Hence, it is expected that the ringgit will hover around RM4.07 to RM4.09 today,” he said.
Meanwhile, the ringgit traded lower against a basket of major currencies.
It fell against the Japanese yen to 2.5887/5920 from 2.5813/5843 at Friday’s close, slipped against the euro to 4.7239/7297 from 4.7132/7184 and declined against the British pound to 5.5140/5208 from 5.4949/5010 previously.
Against regional currencies, the ringgit also weakened against the Singapore dollar to 3.1966/2008 from 3.1911/1949 and eased against the Thai baht to 12.3732/3944 from 12.3665/3843.
The local currency was little changed against the Philippine peso at 6.70/6.72 from 6.71/6.72 and remained flat against the Indonesian rupiah at 228.4/228.7.
