KUALA LUMPUR — The ringgit is likely to remain defensive within the 4.41-4.45 range against the US dollar next week, underpinned by Bank Negara Malaysia’s recent policy status quo and Malaysia’s solid macro outlook.
Kenanga Investment Bank Bhd said a non-farm payroll (NFP) print near 100,000 could reinforce expectations of an additional US Federal Reserve’s (Fed) rate cut, potentially weakening the US dollar and supporting the ringgit.
“Markets are now focused on Europe, where effective fiscal stimulus could limit further European Central Bank (ECB) rate cuts, shifting the Fed-ECB monetary policy divergence outlook and strengthening the euro.
“Retaliatory moves from Canada and Mexico, along with another tariff delay, may prolong uncertainty and keep the US dollar index (DXY) range-bound. US payrolls data on Friday and next week’s inflation report will be key market drivers,” the bank said in a research note on Friday.
For the week just ended, the ringgit gained 0.4% against the US dollar but weakened against other major currencies, mainly due to a softer US dollar, reflected in the decline of the DXY.
Initially, the ringgit was under pressure at around 4.47 per US dollar but broke below support and has been trading around 4.43 per US dollar in recent days.
The local currency ended the week at 4.4110/4145 against the greenback, strengthening from 4.4600/4650 the previous week.
However, the ringgit depreciated against other major currencies.
It weakened against the British pound to 5.7070/7115 from 5.6174/6237, slipped versus the Japanese yen to 2.9909/9935 from 2.9682/9717 last week, and fell vis-a-vis the euro to 4.7903/7941 from 4.6362/6414 previously.
The ringgit was also traded lower against ASEAN currencies.
It depreciated against the Indonesian rupiah to 270.6/271.0 from 268.7/269.1 and declined vis-a-vis the Thai baht to 13.1124/1290 from 13.0455/0670.
The domestic unit dipped versus the Singapore dollar to 3.3185/3214 from 3.3069/3108 and eased against the Philippine peso to 7.71/7.73 from 7.69/7.70. – March 8, 2025