Ringgit slightly higher against greenback amid mixed US labour data

KUALA LUMPUR: The ringgit was slightly higher in early trade Monday as the US dollar trended up modestly after the release of mixed US labour data for November.

At 8.15 am, the local currency advanced to 4.4125/4250 against the US dollar, compared to Friday’s close of 4.4170/4220.

The US labour market data released Friday showed the Nonfarm Payrolls (NFP) climbed by 227,000 in November, far exceeding market estimates of 200,000, but the unemployment rate ticked up to 4.2 per cent in November from 4.1 per cent, as expected.

Despite this, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said market expectations of a 25 basis points rate cut this month remained intact.

However, he said that the ringgit may remain guarded as demand for the US dollar is likely to be supportive.

“The latest event in Syria also suggests that the geopolitical temperature remains highly uncertain,” he told Bernama.

The ringgit traded mostly higher against other major currencies.

It rose versus the British pound to 5.6237/6397 from 5.6352/6416, appreciated against the euro to 4.6596/6728 from 4.6719/6771, and eased against the Japanese yen to 2.9430/9516 from 2.9329/9364 at Friday’s close.

The local unit traded firmer against ASEAN currencies.

It improved against the Singapore dollar to 3.2887/2985 versus 3.2963/3002 on Friday, gained against the Indonesian rupiah to 278.4/279.4 from 278.7/279.2, went up versus the Thai baht to 12.9501/9998 from 12.9576/9784, and was marginally higher against the Philippine peso at 7.64/7.66 from 7.65/7.66. – Bernama