Kuala Lumpur: The ringgit opened higher against the US dollar on Friday as the greenback retreated following weaker United States jobs data that raised expectations for interest rate cuts.
At 8 am, the local unit stood at 4.2065/2225 per dollar, firmer than Thursday’s close of 4.2185/2240.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the latest US Consumer Price Index matched forecasts, but Initial Jobless Claims rose to 263,000 last week, well above market expectations of 235,000.
The US August CPI rose 2.9%, in line with consensus estimates and up from 2.7% in July.
Core CPI held steady at 3.1% for a second straight month, after rising 2.9% in June.
“The CPI print was within expectations, clearing the path for the Federal Reserve to cut interest rates next week,” he told Bernama.