Ringit opened a strong against the US dollar on Monday as new expectations of a federal reserve rate cut emerged after the data of the weak-to-first US labor market. At 8 am, the local currency increased to 4.2350/2550 against Greenback, from close to 4.2750/2815 on Friday.
Bank Malaysia Malaysia BHD Chief Economist Dr. Mohammad Afzanizam Abdul Rashid attributed the ribounds of the Ringit to disappoint the data of US Non-Form payroll (NFP). The US Bureau of Labor Statistics added only 73,000 jobs in July, below the market forecast of 110,000.
“Weak labor market strengthens the case for a fed rate cut in September,” said Mohammad Afzanizam. “The US Dollar Index (DXY) has already fallen by 98.708 points, while the 2 -year -old American Treasury yield fell to 3.69 percent by 25 percent from 25 percent points last Friday.”
He said that Ringit, which is 0.22 percent decrease on Friday, can trade between 4.26 and 4.27 today. However, the local currency weakened against other major currencies, slipping against the Japanese yen, British pounds and euros.
Conversely, the ringt was strengthened against regional currencies, growing against Singapore dollar, but a little dip against Thai Baht. It also received against the Philippine Peso and Indonesian Rupiah. – Bernma
