Ringgit Seen Trading at RM4.04-RM4.06 Against USD Next Week
The Malaysian ringgit is expected to trade between RM4.04 and RM4.06 against the US dollar next week, according to market predictions.
This forecast comes after the stronger-than-expected US non-farm payrolls (NFP) data released overnight increased the chances of a US interest rate hike, bolstering the greenback.
Market attention will continue to centre on upcoming US economic data, particularly the Consumer Price Index (CPI) report next Friday, which is widely seen as a key determinant of the US Federal Reserve's next interest rate decision.
Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the US CPI will be a critical data point as the Federal Open Market Committee (FOMC) members reconvene the following week to deliberate on the Fed Funds Rate, which currently stands at 3.50 to 3.75 per cent.
The strong NFP outturn during August suggests that the Fed is likely to raise its benchmark interest rate in the upcoming FOMC meeting on September 15 and 16, Dr Afzanizam said.