KUALA LUMPUR: The ringgit closed higher against major and regional currencies on Monday, including the greenback, as softer US economic data dampened expectations of a US Federal Reserve (Fed) interest rate hike in September.
At 6 pm, the ringgit jumped 225 percentage-in-points (pips) to 4.0585/0630 versus the US dollar from last Friday’s close of 4.0840/0885.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam said the lower US consumer price index (CPI) and weaker jobs data last week appeared to ease expectations of a potential rate hike by the Fed next month.
"The odds for a rate hike in September have gone down to 30 per cent from more than 50 per cent a month ago. In that sense, sentiments over a rate hike in the Fed Funds Rate have shifted, and this could provide support to the ringgit in the immediate term,” he told Bernama.
The US CPI was reported to have risen 0.1 per cent in July, bringing annual inflation to 3.4 per cent, while nonfarm payrolls fell by 23,000 in July compared with economists' forecasts for a gain of around 80,000 jobs.
At the close, the local currency ended higher against a basket of major currencies.
It strengthened against the Japanese yen to 2.5496/5526 from 2.5660/5690 at last Friday’s close and gained vis-à-vis the British pound to 5.5021/5082 from 5.5232/5293. The ringgit rose against the euro to 4.7062/7115 from 4.7182/7234 previously.
The local note also traded higher against regional currencies.
It was marginally higher against the Philippine peso at 6.60/6.61 from 6.64/6.66 and edged up against the Thai baht to 12.2948/3136 from 12.3153/3333.
It gained against the Indonesian rupiah to 228.0/228.3 from 229.0/229.4 at last Friday’s close, and climbed against the Singapore dollar to 3.1804/1842 from 3.1924/1964 previously. - Bernama
