Ringgit To Remain Range-bound Next Week Amid Focus On US Jobs Data

By Rosemarie Khoo Mohd Sani

KUALA LUMPUR, May 30 (Bernama) -- The ringgit is forecast to trade within a narrow range of RM3.95 to RM3.97 against the US dollar next week as trading activity may be subdued during the holiday-shortened week.

Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid told Bernama that the focus next week would be on the United States labour market, particularly the Nonfarm Payrolls (NFP) report and unemployment rate.

He said the current backdrop suggests that inflation in the US is likely to remain elevated, with Personal Consumption Expenditures (PCE) inflation standing at 3.8 per cent in April, well above the US Federal Reserve's (Fed) two per cent target.

"As such, labour market data will be crucial in assessing the case for further monetary policy tightening," he said.

On a Friday-to-Friday basis, the ringgit ended higher at 3.9625/9670 against the US dollar, compared with 3.9655/9700 a week earlier.

The local currency traded mostly firmer against a basket of major currencies during the week.

It appreciated against the British pound to 5.3165/3225 from 5.3245/3305 and strengthened versus the Japanese yen to 2.4874/4904 from 2.4925/4954, but weakened against the euro to 4.6127/6180 from 4.6012/6064 previously.

Against ASEAN currencies, however, the ringgit traded mostly lower.

It rose against the Indonesian rupiah to 221.6/221.9 from 223.8/224.1, but eased vis-a-vis the Singapore dollar to 3.1010/1048 from 3.0985/1023, slipped against the Thai baht to 12.1732/1926 from 12.1421/1611, and declined against the Philippine peso to 6.43/6.44 from 6.42/6.44.

The market will be closed on June 1 and 2 in conjunction with the King's Birthday and Wesak Day holidays, before resuming operations on June 3.

-- BERNAMA