Ringgit likely to trade in tight range next week

KUALA LUMPUR: The ringgit is likely to maintain its tight range of RM4.54 to RM4.56 against the US dollar next week as investors are expected to closely monitor several data releases scheduled by the United States, said an analyst.
 
Bank Muamalat Malaysia Bhd chief economist and social finance head Dr Mohd Afzanizam Abdul Rashid said tonight’s US Non-Farm Payrolls (NFP) report would set the tone for the US dollar next week.
 
“Should the figure turn out to be better than expected, it may give further support to the US dollar as the US Federal Reserve (Fed) would be looking at the incoming data before deciding its next course of action.
 
“On that note, the US Consumer Price Index (CPI) will be reported next week, and thus far we have seen the inflation rate continuing to moderate to 3.0 per cent in June 2023 after reaching 9.1 per cent in June 2022,” he told Bernama.
 
He said that the inflation print is critical, as this has been the main economic variable that resulted in the aggressive monetary tightening by the Fed.
 
For the week just ended, the ringgit was traded mostly lower before rebounding at the end of the week.
 
On a Friday-to-Friday basis, the ringgit was higher against the US dollar at 4.5515/5565 from 4.5535/5565 a week earlier.
 
The local unit was traded higher against other major currencies.
 
It grew against the British pound to 5.7836/7899 from 5.8362/8401 the previous Friday, advanced versus the euro to 4.9816/9871 compared to 4.9966/9998, and appreciated vis-a-vis the Japanese yen to 3.1898/1935 from 3.2691/2715 previously.
 
The ringgit was traded higher against its ASEAN peers.
 
The local unit gained against the Singapore dollar to 3.3891/3933 from 3.4183/4208 a week earlier, was better versus the Thai baht at 13.0835/1043 from 13.2058/2218, firmed against the Indonesian rupiah to 299.9/300.5 from 301.4/301.8, and rose vis-a-vis the Philippine peso to 8.16/8.17 from 8.29/8.31 last Friday. – BERNAMA