KUALA LUMPUR: The ringgit opened higher against the US dollar on Monday, following reduced expectations of a US Federal Reserve (Fed) interest rate hike amid weaker-than-expected US jobs data, which is weighing on the greenback.
At 8am, the ringgit rose to 4.0805/4.0870 against the US dollar from Friday’s close of 4.0820/4.0870.
Bank Muamalat Malaysia Bhd chief economist Afzanizam 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.
“The US unemployment rate also increased slightly to 4.2% in September, after staying at 4.1% for the previous two months.
“This suggests that the Fed may decide not to raise interest rates at its upcoming meeting on Oct 27-28,” he noted.
