KUALA LUMPUR (Bernama): The ringgit is expected to trade within the RM4.09 to RM4.11 range this week as investors await key economic data releases.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid told Bernama that the main focus for investors will be the United States (US) labour market data, mainly the Nonfarm Payroll (NFP) figures and the unemployment rate.
He said investors would also be watching the upcoming US Institute of Supply Management (ISM) Index survey data for the manufacturing and services sectors.
"The US Conference Board Consumer Confidence Index will also be released next week. On that note, traders and investors will be observing the incoming data points and reflecting on whether the case for an interest rate hike is building up or otherwise,” he said.
Similarly, Kenanga Investment Bank Bhd said investors are likely to use next week's labour market data to reassess whether current hawkish Federal Reserve pricing has become excessive.
The investment bank said lower crude oil prices and easing geopolitical risk premiums should cap further US dollar upside next week.
"Our baseline assumes the fragile US-Iran ceasefire broadly holds and oil shipments through the Strait of Hormuz continue without major disruptions.
"Therefore, we expect the US dollar-ringgit exchange rate to trade within RM4.08-RM4.12, with risks tilted towards gradual ringgit appreciation as the current greenback rally nears its peak,” it said in a research note.
On a Friday-to-Friday basis, the ringgit gained to 4.0860/0910 against the US dollar from 4.1340/1395 a week earlier.
The local currency traded higher against a basket of major currencies during the week.
It rose against the British pound to 5.4013/4079 from 5.4709/4782, appreciated versus the Japanese yen to 2.5283/5316 from 2.5636/5671 and advanced vis-à-vis the euro to 4.6605/6662 from 4.7376/7439 previously.
The ringgit was firmer against ASEAN currencies.
It strengthened against the Indonesian rupiah to 227.9/228.3 from 232.2/232.5, climbed vis-à-vis the Singapore dollar to 3.1581/1625 from 3.2019/2064, notched up against the Thai baht to 12.2445/2643 from 12.5856/6074, and turned higher versus the Philippine peso to 6.66/6.67 from 6.80/6.81. -- Bernama
