Ringgit Outlook Steady Ahead of Key US Economic Data

The ringgit is expected to trade between 4.07 and 4.09 against the US dollar next week, with market sentiment influenced by key US economic data releases.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid predicts that a series of indicators will shape market sentiment, including the Institute for Supply Management (ISM) indices and nonfarm payrolls.

The lack of clear forward guidance in the Federal Open Market Committee (FOMC) statement makes it difficult to determine whether interest rates will rise in September.

A prolonged pause in US interest rates could provide support for the ringgit next week, according to Dr Afzanizam.