Kuala Lumpur:The ringgit is anticipated to trade within a narrow range against the US dollar next week as investors await key United States economic data that could provide insights into future interest rate directions.
According to BERNAMA News Agency, Bank Muamalat Malaysia Bhd chief economist Dr. Mohd Afzanizam Abdul Rashid highlighted that the focus will be on the US labor market, particularly the nonfarm payrolls report set for release on October 2. He expects the ringgit to fluctuate between RM4.07 and RM4.10 against the US dollar.
Dr. Mohd Afzanizam noted that the US Personal Consumption Expenditures inflation report, due on September 30, is also under scrutiny. Consensus estimates suggest an unchanged inflation rate of 3.7 percent for September compared to August.
Locally, attention is shifting towards Budget 2027, scheduled to be tabled on October 9. Domestic political developments, including the Melaka state election, could influence foreign investor assessments of the Malaysian market.
On a weekly basis, the ringgit increased against the US dollar, moving to 4.0715/0765 from 4.0795/0840 the previous week. The local currency also strengthened against a basket of major currencies, appreciating against the British pound, Japanese yen, and euro.
The ringgit showed gains against several ASEAN currencies as well, improving against the Singapore dollar, Thai baht, and Indonesian rupiah. However, it slightly declined against the Philippine peso.