KUALA LUMPUR – The ringgit is expected to trade range-bound ahead of the next set of tier-one United States economic data next Friday, after which the key US non-farm payroll (NFP) will be released, an analyst said.
SPI Asset Management managing director Stephen Innes said the data print would be very important for forex markets as it could determine how soon the US Federal Reserve would cut interest rates if it came in below expectations.
“The other factor that could drive ringgit sentiment is the outcome of the Organisation of Petroleum Exporting Countries meeting and if it maintains the status quo without trimming production, that could trigger a fall in oil prices and tarnish the ringgit slightly,” he said.
Nevertheless, he said if any hawkish surprise in the US NFP data takes place, the local note could continue to appreciate but it all depends on the US economic data.
Kenanga Investment Bank Bhd, in a research note, said the ringgit might oscillate between gains and losses due to the absence of pro-ringgit catalysts.
“However, market participants will closely monitor the US core personal consumption expenditures data, where a softer-than-anticipated reading could prop up the ringgit.
“Additionally, investors are expected to scrutinise Manufacturing Purchasing Managers Index data from both Malaysia and China for insights into the countries’ latest economic conditions,” it said.
The research firm also said that any indications of recovery might positively impact the ringgit.
For the week just ended, the local note traded mixed after the US Federal Open Market Committee minutes of its last meeting showed that the American central bank will remain cautious in its approach to monetary policy.
On a Friday-to-Friday basis, the ringgit depreciated against the US dollar to 4.6830/6875 from 4.6785/6825 a week earlier.
The local unit depreciated against major currencies.
It decreased against the euro to 5.1059/1108 from 5.0771/0814 a week ago, lowered versus the Japanese yen to 3.1295/1327 from 3.1267/1296 and dropped vis-a-vis the British pound to 5.8767/8823 from 5.8056/8105 a week earlier.
The ringgit was also traded mixed against its Asean peers.
It fell against the Singapore dollar to 3.4903/4940 from 3.4769/4801 last week and inched down versus the Philippine peso to 8.45/8.46 from 8.40/8.41.
However, the local note increased against the Indonesian rupiah to 300.8/301.3 from 301.9/302.3 and was higher against the Thai baht at 13.1949/2139 from 13.3298/3481 at the previous Friday’s close. – November 25, 2023