KUALA LUMPUR: The ringgit closed stronger against the US dollar yesterday following a softer-than-expected US jobs report that significantly altered market expectations on the Federal Reserve (Fed) policy, says an analyst.
At 6pm, the local note rose to 4.2350/2385 versus the US dollar from Friday’s close of 4.2750/2815.
SPI Asset Management managing director Stephen Innes said that last Friday’s nonfarm payrolls data showed a marked slowdown in US job creation, prompting traders to sharply increase bets on monetary easing.
“Market-implied expectations for Fed rate cuts this year jumped to 64 basis points, up from 33 basis points prior to the release. The probability of a September rate cut surged above 90%,” he told Bernama.
