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THE ringgit is expected to trade within a tight range of RM4.37 to RM4.38 against the US dollar next week, as markets await several key economic indicators from the United States, according to Bank Muamalat Malaysia Bhd Chief Economist Dr Mohd Afzanizam Abdul Rashid.
He told Bernama today that US consumer sentiment, as measured by the Conference Board's Consumer Confidence Index, is forecast to decline to 88.5 in April from 92.9 in March.
This will be followed by the release of the Institute for Supply Management’s (ISM) Manufacturing Index, which is projected to ease to 47.9 points in April — indicating a continued contraction in manufacturing activity.
Markets will also closely monitor US non-farm payroll data and the core Personal Consumption Expenditures (PCE) inflation report for further clues on the Federal Reserve’s next move.
“This week brings a string of crucial data releases, and the market will be searching for signals on whether the US Federal Reserve may consider cutting the federal funds rate soon,” said Mohd Afzanizam, speaking to Bernama.
“We remain positive on the ringgit as expectations for a potential US interest rate cut are beginning to gain traction,” he added.
The ringgit ended the week firmer at 4.3705/3770 against the US dollar, up from 4.4100/4175 the previous week.
It also strengthened against several major and regional currencies. Against the euro, the ringgit appreciated to 4.9596/9670 from 5.0133/0218, rose to 3.0431/0481 from 3.0971/1028 against the Japanese yen, and improved to 5.8128/8214 from 5.8516/8616 against the British pound.
Among ASEAN currencies, the ringgit climbed to 259.6/260.2 from 261.2/261.8 against the Indonesian rupiah, advanced to 3.3228/3280 from 3.3603/3667 against the Singapore dollar, and firmed to 13.0195/0450 from 13.1599/1902 versus the Thai baht.
It remained largely unchanged against the Philippine peso at 7.77/7.78, compared to 7.77/7.79 previously. - April 26, 2025