Kuala lumpur: The ringgit opened on a stronger note against the US dollar on Monday, buoyed by rising expectations of potential interest rate cuts in the United States following underwhelming nonfarm payrolls (NFP) data.

According to BERNAMA News Agency, at 8 am, the Malaysian currency was valued at 4.2030/2285 per dollar, improving from Thursday’s close of 4.2260/2320. The financial markets were closed on Friday due to the Maulidur Rasul holiday. Bank Muamalat Malaysia Bhd’s chief economist, Dr. Mohd Afzanizam Abdul Rashid, indicated that the weaker-than-anticipated US August NFP report might lead to a rate cut during the upcoming Federal Open Market Committee (FOMC) meeting.

Dr. Mohd Afzanizam also highlighted that the ringgit might experience cautious trading due to political developments in Japan, which could support the dollar. He noted that the resignation of Japan’s prime minister might be dollar-positive, as the anticipated new leadership is expected to adopt a more dovish fiscal policy. Consequently, the US dollar against the ringgit could fluctuate between 4.21 and 4.23 today, he told Bernama.

In early trading, the ringgit showed strength against major currencies. It advanced to 2.8322/8496 against the yen from last week’s 2.8489/8531 and rose to 5.6694/7038 against the pound from 5.6793/6874. The ringgit remained relatively stable against the euro at 4.9213/9512 compared to 4.9203/9273 previously.

Regarding ASEAN currencies, the ringgit largely traded stronger. It improved to 256.5/257.9 against the rupiah from Thursday’s 257.3/257.7, increased to 3.2706/2867 versus the Singapore dollar from 3.2775/2824, and climbed to 7.35/7.39 against the peso from 7.40/7.42. However, it saw a slight decline to 13.0454/1158 against the baht from last week’s 13.0666/0908.