US job data reveals weakness, encouraging predictions of interest rate cut, leading to Ringgit strengthening.

Ringgit Strengthens Against Major Currencies Amid US Rate Cut Expectations

The Malaysian ringgit has shown a notable strengthening against several major currencies this week, as expectations of US interest rate cuts continue to mount.

According to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid, the ringgit opened stronger against the US dollar on Monday, trading at 4.2030/2285 per dollar at 8am. This represents an advance from Thursday's rate of 257.3/257.7.

The US Federal Open Market Committee (FOMC) is scheduled to meet next week, and Dr Mohd Afzanizam Abdul Rashid has predicted a rate cut during the meeting. This prediction is in relation to weaker nonfarm payrolls (NFP) data, which has fueled expectations of US interest rate cuts.

The ringgit also climbed to 3.2706/2867 versus the Singapore dollar, and 5.6694/7038 against the pound, from previous rates of 3.2775/2824 and 5.6793/6874, respectively. The ringgit was little changed against the euro at 4.9213/9512 compared with its previous rate of 4.9203/9273.

Meanwhile, the ringgit strengthened to 2.8322/8496 versus the yen from last week's 2.8489/8531. However, it slipped to 13.0454/1158 against the baht from last week's 13.0666/0908.

Dr Mohd Afzanizam Abdul Rashid also noted that the ringgit may trade cautiously due to political developments in Japan, which could lend support to the US dollar. Markets were closed on Friday for the Maulidur Rasul holiday.

The ringgit traded mostly firmer against ASEAN currencies, and the US dollar against the ringgit could range between 4.21 and 4.23 today.

Dr. Mohd Afzanizam Abdul Rashid is the Chief Economist of Bank Islam Malaysia Berhad. He has been a leading analyst at the bank for several years and plays a significant role in shaping the bank's economic research and analyses.

Bank Islam is Malaysia's first and one of the leading Islamic banks. Dr. Mohd Afzanizam Abdul Rashid regularly publishes analyses on the Malaysian and global economy, interest rates, and topics related to Islamic finance.

For more current or in-depth information, it is worth checking the official website of Bank Islam Malaysia Berhad or economic media that report on Malaysia.

US job data reveals weakness, encouraging predictions of interest rate cut, leading to Ringgit strengthening.