KUALA LUMPUR: The ringgit is likely to trade cautiously next week, hovering between RM4.09 and RM4.11 against the US dollar after strengthening by 0.39 per cent week-on-week.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said a series of key United States (US) data releases next week will provide fresh guidance for market participants.
These include the Nonfarm Payrolls (NFP), Consumer Price Index (CPI), Personal Consumption Expenditures (PCE), as well as the University of Michigan Consumer Sentiment Index (CSI).
"This is also alongside a series of speeches by US Federal Reserve (Fed) officials, who are expected to share reservations regarding inflationary risk, as it is still oscillating above the two per cent level,” he told Bernama.
Earlier this week, the local note hovered at RM4.11 on Monday and started to weaken on Wednesday ahead of the Federal Open Market Committee (FOMC) meeting, before finally rebounding after the Fed cut the interest rate, which brought the local note to 4.1040 on Thursday.
The ringgit marched stronger at the end of the week, reaching the 4.09 level on Friday - hitting a new four-year-and-seven-month high, supported by positive Malaysian economic data.
On a weekly basis, the ringgit strengthened against the greenback, closing higher at 4.0945/1005 compared with 4.1105/1140 last week.
The local note traded mostly higher against a basket of major currencies.
It strengthened against the yen to 2.6264/6304 from 2.6536/6561, and climbed vis-a-vis the British pound to 5.4789/4869 from 5.4859/4905; however, it slipped versus the euro to 4.8037/8107 from 4.7912/7953 at last week’s close.
The ringgit also trended mostly higher against its ASEAN peers.
It appreciated versus the Indonesian rupiah to 245.9/246.4 from 246.8/247.2 last week, increased against the Singapore dollar to 3.1701/1750 from 3.1741/1773 previously, and was higher against the Philippine peso at 6.93/6.94 from 6.97/6.98.
However, the local currency weakened versus the Thai baht to 12.9589/9845 from 12.9054/9221 a week ago. - Bernama
