KUALA LUMPUR (Bernama): The ringgit is expected to trade in a tight band next week, hovering between RM3.94 and RM3.96 as investors await further economic data from the United States, according to an economist.
Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid said the focus next week would be on the US Federal Open Market Committee (FOMC) meeting, which will be held on April 28 and 29.
He said most economists expect the Fed Fund Rate (FFR) to remain unchanged at 3.75 per cent.
While the market has priced in such a decision, he said the latest assessment would be the guiding principle on how the FFR would evolve going forward.
"This would mean data points such as the Conference Board Consumer Confidence Index, ISM manufacturing index for the manufacturing sector, as well as Personal Consumption Expenditures (PCE) inflation, will also be closely monitored as the data series will be released next week.
"As such, expect dollar-ringgit to maintain its narrow range bias as market participants will remain cautious next week,” he told Bernama.
The ringgit eased against the US dollar at 3.9630/9670 on Friday, compared with 3.9505/9545 at the end of the previous trading week.
The local note traded firmer against a basket of major currencies this week.
It rose against the British pound to 5.3429/3483 from 5.3454/3508, and appreciated against the euro to 4.6312/6358 from 4.6588/6635, while it gained versus the Japanese yen to 2.4808/4834 from 2.4838/4865.
Meanwhile, the ringgit was traded mostly higher against its Asean peers.
It inched up versus the Singapore dollar to 3.1009/1043 from 3.1053/1086, strengthened against the Thai baht to 12.2183/2363 from 12.3084/3274, and elevated against the Philippine peso to 6.52/6.53 from 6.58/6.59 previously, while it fell versus the Indonesian rupiah to 230.0/230.3 from 229.8/230.1. -- Bernama
