Ringgit expected to trade range-bound next week ahead of key US data

KUALA LUMPUR: The ringgit is expected to trade within a narrow range against the US dollar next week as investors await key United States economic data for further clues on the direction of interest rates.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said attention would be on the US labour market next week, particularly the nonfarm payrolls report which is due to be released on Oct 2.

"We expect the ringgit to trade within a range of around RM4.07 to RM4.10 against the US dollar next week," he told Bernama.

Mohd Afzanizam said attention would also be on the US Personal Consumption Expenditures inflation report due on Sept 30, with consensus estimates pointing to an inflation rate of 3.7 per cent in September, unchanged from August.

On the domestic front, he said focus would increasingly turn to Budget 2027, which is scheduled to be tabled on Oct 9.

"Domestic political developments could also influence how foreign investors assess the Malaysian market, with the Melaka state election among the developments being monitored," he said.

Meanwhile, on a Friday-to-Friday basis, the ringgit increased against the greenback to 4.0715/0765 from 4.0795/0840 a week earlier.

The local currency also traded higher against a basket of major currencies during the week.

The ringgit appreciated versus the British pound to 5.3907/3973 from 5.4543/4603 on the previous Friday, gained against the Japanese yen to 2.5764/5797 from 2.5829/5860, and rose vis-a-vis the euro to 4.6378/6435 from 4.6849/6901.

It also traded mostly higher against Asean currencies.

The local note edged up versus the Singapore dollar to 3.1858/1900 from 3.1933/1971 a week earlier, strengthened vis-a-vis the Thai baht to 12.2036/2234 from 12.2383/2562, and climbed against the Indonesian rupiah to 227.4/227.8 from 229.7/230.0

However, it slipped against the Philippine peso to 6.52/6.53 from 6.50/6.51 last Friday.