KUALA LUMPUR, 11 October 2022 – According to a trader, the ringgit began lower versus the US dollar this morning on higher-than-expected non-farm payrolls (NFP) statistics for September, which attests to the scenario of a robust economic recovery in the United States (US).
The local currency was trading at 4.6660/6680 versus the US dollar at 9 a.m., down from 4.6480/6520 at the closing on Friday.
According to the US Department of Labor, nonfarm payrolls increased by 263,000 in September. Meanwhile, as highlighted by ActivTrades trader Dyogenes Rodrigues Diniz, the unemployment statistics was also 3.5 percent higher than expected, boosting the dollar.
“The 3.5 percent number is the lowest in the series’ history, and it is just another indicator that the US labour market is strong,”
As a result, he predicted that the Federal Reserve will raise interest rates in the short and medium term to manage inflation because both sets of figures were higher than expected, making US fixed income assets more desirable to investors.
In the meantime, the ringgit rose versus a basket of major currencies. The local currency rose against the British pound to 5.1727/1749, up from 5.2132/2177 at the end on Friday, and against the Singapore dollar to 3.2489/2505, up from 3.2529/2559.
It also increased against the euro, rising to 4.5349/5368 from 4.5574/5613 at the end of last week, and against the Japanese yen, rising to 3.2025/2043 from 3.2084/2116 earlier.
The local market reopened today after being closed on Monday due to the Maulidur Rasul public holiday. – Bernama.
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