Ringgit Closes Firmer On Weak US Nonfarm Payrolls Report

By Abdul Hamid A Rahman

KUALA LUMPUR, Sept 8 (Bernama) -- The ringgit closed higher against the US dollar today as the greenback weakened following a disappointing United States labour market report released last Friday.

At 6 pm, the local note appreciated to 4.2165/2205 from last Thursday’s close of 4.2260/2320. The market was closed on Friday for the Maulidur Rasul holiday.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the weaker-than-expected US Nonfarm Payrolls (NFP) report for August has strengthened the case for an interest rate cut when the Federal Open Market Committee (FOMC) reconvenes next week.

“For now, the Fed officials are in a blackout period, during which they are not allowed to share their views with the public a week before the FOMC meeting.

“Hence, traders and investors are left with only a few data points to digest, namely the Producer Price Index (PPI) and Consumer Price Index (CPI),” he told Bernama.

At the close, the ringgit was lower against a basket of major currencies.

It depreciated against the euro to 4.9430/9477 from 4.9203/9273, slipped versus the yen to 2.8536/8565 from 2.8489/8531, and shed against the pound to 5.6956/7011 from 5.6793/6874 last week.

Against ASEAN currencies, the ringgit was also lower.

It dropped against the Singapore dollar to 3.2831/2865 from 3.2775/2824, eased against the baht to 13.2299/2491 from 13.0666/0908, lower versus the rupiah at 258.5/258.8 from 257.3/257.7 and slipped against the peso to 7.43/7.44 from 7.40/7.42 previously.

-- BERNAMA