Zup! Ringgit Returns to RM4.71, Weak Against USD


The ringgit opened lower against the US dollar on Monday after higher US NFP data was released last Friday.

At 9.06am, the ringgit fell to 4.7150 against the USD from last week's close of 4.6900.

Bank Muamalat Malaysia Bhd's Chief Economist, Dr Afzanizam said the May NFP report showed 272,000 new jobs in May, surpassing the market's forecast of 182,000.

He also said that average US weekly earnings were also higher at 4.1% on an annual basis from 4.0% previously and this gave the impression that wage growth was still resilient.

With that, the ringgit is expected to remain weak for the time being as the market awaits the decision of the Federal Open Market Committee (FOMC) on June 12 which will provide a clear picture of the latest macroeconomics in the US.

The latest assessment of the Federal Reserve (Fed) on the labor market situation is quite critical because it is still confused whether to maintain or eliminate the tight monetary policy that is currently in place.

For now, the ringgit is trading high compared to the world's major currencies.

The local unit strengthened against the Japanese yen to 3.0066/0100 from 3.0163/0190 at Friday's close, rose against the British pound to 5.9994/6.0057 from 6.0009/0060 previously and was higher against the euro at 5.0874/0. from 5.1079/1122 last week.

It also traded mixed compared to Asean peers.

The ringgit rose against the Thai baht to 12.7743/7944 from 12.8465/8627 at the last close and rose against the Singapore dollar at 3.4861/4901 from 3.4872/4905 previously.

However, it eased against the Philippine peso to 8.02/8.04 from 8.01/8.02 last week and eased to 291.1/291.5 against the Indonesian rupiah from 289.5/289.9 on Friday.