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

KUALA LUMPUR — The Malaysian ringgit is anticipated to trade within a tight range against the US dollar over the upcoming week, as investors eagerly await critical US economic data for additional insight into potential interest rate changes. Dr Mohd Afzanizam Abdul Rashid, chief economist at Bank Muamalat Malaysia Bhd, highlighted that the US labor market, specifically the nonfarm payrolls report scheduled for October 2, will be the primary focus.

The economist projected the ringgit would fluctuate between approximately RM4.07 and RM4.10 against the greenback during the next week. He also mentioned that the upcoming Personal Consumption Expenditures inflation report, due on September 30, with an expected inflation rate of 3.7 percent (unchanged from August), would garner attention.

Domestically, focus will increasingly shift towards the Budget 2027, set to be presented on October 9. Additionally, domestic political developments, such as the Melaka state election, could impact how foreign investors perceive the Malaysian market. On a weekly basis, the ringgit experienced an increase against the US dollar, moving from 4.0795/0840 to 4.0715/0765.

It also appreciated against various major currencies, including the British pound, Japanese yen, euro, Singapore dollar, Thai baht, and Indonesian rupiah, while experiencing a slight dip against the Philippine peso.