Kuala lumpur: The ringgit opened higher against the US dollar on Monday, buoyed by weaker than expected United States non-farm payrolls (NFP) data. At 8 am, the local currency appreciated to 4.0875/0925 against the greenback, compared to Friday's close of 4.0885/0930.

According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam highlighted that the NFP for July showed a decrease of 23,000 jobs, contrary to the consensus estimate of 88,000 jobs being created. Additionally, the US Labour Force Participation Rate (LFPR) has been on a decline for eight months straight, currently standing at 61.4 per cent. Meanwhile, Average Hourly Earnings saw moderate growth of 3.2 per cent in July, indicating that the US labour market is not entirely robust.

This data has impacted market expectations regarding a potential interest rate hike at the upcoming September Federal Open Market Committee (FOMC) meeting. The probability of a rate hike has now reduced to 43.9 per cent, down from 57 per cent prior to the NFP report's release.

Despite this, Dr Mohd Afzanizam pointed out that uncertainties surrounding the reopening of the Strait of Hormuz continue to be a significant factor influencing market sentiment. He anticipates that the ringgit will remain within the range of RM4.07 to RM4.09 throughout the day.

The ringgit's performance against a basket of major currencies showed a decline. It fell against the Japanese yen to 2.5887/5920 from the previous close of 2.5813/5843, slipped against the euro to 4.7239/7297 from 4.7132/7184, and declined against the British pound to 5.5140/5208 from 5.4949/5010.

In contrast, the ringgit exhibited a mixed trend against regional currencies. It weakened against the Singapore dollar to 3.1966/2008 from 3.1911/1949 and eased versus the Thai baht to 12.3732/3944 from 12.3665/3843. However, it remained relatively stable against the Philippine peso at 6.70/6.72 from 6.71/6.72 and was unchanged against the Indonesian rupiah at 228.4/228.7.