Ringgit Set for Further Decline Against US Dollar

The ringgit is expected to trade between RM4.04 and RM4.06 against the US dollar next week, according to market analysts.

This prediction comes after stronger-than-expected US non-farm payrolls (NFP) data was released, which increased the chances of a US interest rate hike and bolstered the greenback.

Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said that the upcoming Consumer Price Index (CPI) report on Friday will be a critical data point for the Federal Reserve's next interest rate decision.

The strong NFP outturn in August suggests that the Fed is likely to raise its benchmark interest rate in the upcoming FOMC meeting on September 15 and 16, according to Dr Afzanizam.