KUALA LUMPUR: The ringgit is expected to trade between 4.07 and 4.09 against the US dollar next week, with market sentiment likely to be guided by a series of key United States (US) economic data releases and their implications for the Federal Reserve’s interest rate outlook.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the coming week would be data-heavy in the US, with several key indicators and the labour market scheduled for release.
These include the Institute for Supply Management (ISM) indices, the Job Openings and Labor Turnover Survey (JOLTS), nonfarm payrolls and the unemployment rate, all of which are expected to shape market sentiment.
"This is particularly important given the lack of clear forward guidance in the latest Federal Open Market Committee (FOMC) statement.
"While the case for a September rate hike remains intact, the weaker-than-expected second-quarter 2026 US gross domestic product growth suggests that a prolonged policy pause cannot be entirely ruled out,” he told Bernama.
Mohd Afzanizam added that the possibility of a prolonged pause in US interest rates could provide some support for the ringgit next week.
On a Friday-to-Friday basis, the ringgit strengthened against the US dollar to 4.0835/0875 from 4.0885/0935 a week earlier.
The local currency traded lower against most major currencies during the week.
It weakened against the Japanese yen to 2.5520/5548 from 2.4976/5008, declined vis-a-vis the euro to 4.6981/7027 from 4.6556/6613, and depreciated against the British pound to 5.4923/4977 from 5.4442/4509 previously.
The ringgit also traded mostly lower against ASEAN currencies.
It eased against the Singapore dollar to 3.1823/1856 from 3.1667/1708, declined against the Philippine peso to 6.66/6.67 from 6.61/6.62, and weakened against the Thai baht to 12.2264/2435 from 12.1414/1606 last Friday.
However, it improved against the Indonesian rupiah to 226.6/226.8 from 227.6/227.9 previously. - Bernama
