KUALA LUMPUR: The ringgit opened firmer against the US dollar on Friday despite stronger US labour market data that continued to support the greenback.
At 8 am, the ringgit strengthened to 4.1515/1645 against the greenback, compared with yesterday’s close of 4.1565/1645.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest US nonfarm payrolls report showed 119,000 jobs were created in September, beating forecasts.
He said a higher participation rate also pointed to a still-resilient labour market, a combination that may prompt the US Federal Reserve to keep interest rates unchanged at its December meeting.
"While the stronger labour reading should keep the US dollar supported in the near term, the ringgit’s early gains suggest markets are continuing to reassess the timing and scale of potential US rate cuts in 2026, especially with a new US Federal Reserve chair to be appointed in May.
"The case for rate cuts is not totally off the table. It is a question of timing and quantum. For now, however, the US dollar is expected to remain on a positive trajectory,” he told Bernama.
He added that the ringgit had closed 0.24 per cent lower against the greenback on Thursday, but may continue to see near-term technical support, with trading expected within the RM4.15-RM4.17 range today.
At the opening, the ringgit traded higher against a basket of major currencies.
It rose against the yen to 2.6377/6461 from 2.6446/6498 at Thursday’s close, strengthened against the euro to 4.7879/8029 from 4.7916/8008, and appreciated vis-à-vis the British pound to 5.4314/4484 from 5.4367/4472 previously.
The ringgit also gained against ASEAN currencies.
It firmed against the Singapore dollar to 3.1751/1856 from 3.1809/1873 on Thursday, advanced against the Thai baht to 12.7856/8356 from 12.8093/8395, appreciated vis-à-vis the Indonesian rupiah to 248.0/248.9 from 248.3/248.9, and edged higher against the Philippine peso to 7.03/7.05 from 7.04/7.05. - Bernama
