The ringgit opened lower against the US dollar

The ringgit opened lower against the US dollar

KUALA LUMPUR,. The ringgit opened lower against the US dollar this morning following the higher-than-expected non-farm payrolls (NFP) data for September, which further attests to the scenario of a strong economic recovery in the United States (US), said a dealer.

At 9am, the local currency dropped to 4.6660/6680 against the greenback from Friday’s close of 4.6480/6520.

According to the US Department of Labour, NFP rose by 263,000 in September.

ActivTrades trader Dyogenes Rodrigues Diniz said the unemployment data was also 3.5 per cent stronger than the forecast of 3.7 per cent and was favourable to the greenback.

“The 3.5 per cent reading is the lowest in the historical series and is another sign that the US job market is solid,” he said in a note today.

Therefore, he said, the Federal Reserve was likely to raise interest rates in the short and medium term to contain inflation as both sets of numbers were stronger than expected, making the US fixed income assets more appealing to investors.

Meanwhile, the ringgit traded higher against a basket of major currencies.

The local note gained against the British pound to 5.1727/1749 from 5.2132/2177 at Friday’s close and increased against the Singapore dollar to 3.2489/2505 from 3.2529/2559.

It also appreciated vis-a-vis the euro to 4.5349/5368 from 4.5574/5613 at the end of last week and rose versus the Japanese yen to 3.2025/2043 from 3.2084/2116 previously.

The local market was closed yesterday in lieu of the Maulidur Rasul public holiday and recommenced today.

— Bernama

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