Ringgit stronger as greenback weakens on US jobs data

KUALA LUMPUR: The ringgit has opened the week on a positive note, supported by a broadly weaker US dollar, higher oil prices and an enduring global economic recovery despite the "swing and a miss" on Friday's US jobs report, said an analyst.

At 9.04am, the local currency rose to 4.1000/1030 against the greenback from Friday’s close of 4.1100/1140.

SPI Asset Management global managing partner Stephen Innes said a sharply below-consensus read in April's US non-farm payrolls prompted a sell-off in the US dollar across the board on Friday as it likely relieved some pressure from the US Federal Reserve to shift to less dovish rhetoric.

For April, the US nonfarm payrolls increased by a much less-than-expected 266,000 and the unemployment rate rose to 6.1 per cent amid an escalating shortage of available workers.

At the same time, he said the data miss was not enough to negatively impact the underlying recovery story, leaving the global risk sentiment supported, as equities can also continue to benefit from the lower-for-longer story.

"And the global recovery may continue to put some pressure on the US dollar in the week ahead. Indeed the large beat on China exports last week points to an upswing in the global economy that Malaysia's exporters are also benefiting from,” Innes told Bernama.

At the opening today, the ringgit was traded lower against other major currencies.

Against the British pound, it fell to 5.7571/7586 from 5.7203/7267 and decreased against the yen to 3.7705/7743 from Friday’s close of 3.7662/7702.

Vis-à-vis the Singapore dollar, the ringgit eased to 3.0918/0947 from 3.0870/0916 and declined against the euro to 4.9856/9897 from 4.9632/9697. - Bernama

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