Ringgit Outlook Steady Ahead of Key US Economic Data Releases

The Malaysian ringgit is expected to trade between 4.07 and 4.09 against the US dollar next week, according to Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid.

This prediction comes as a series of key United States economic data releases are scheduled for release, which will guide market sentiment and shape expectations about the Federal Reserve's interest rate outlook.

The upcoming US data includes the Institute for Supply Management (ISM) indices, Job Openings and Labor Turnover Survey (JOLTS), nonfarm payrolls, and the unemployment rate, all of which are crucial indicators that could impact market sentiment.

Dr Mohd Afzanizam noted that while the case for a September rate hike remains intact, weaker-than-expected US gross domestic product growth suggests that a prolonged policy pause cannot be entirely ruled out. This possibility may provide some support for the ringgit next week.