kuala lumpur:The ringgit is expected to remain range-bound ahead of the next round of economic indicators, when the key US non-farm payrolls (NFP) will be released next Friday, analysts said. .
Stephen Innes, managing director at SPI Asset Management, said the data print will be a major factor in the foreign exchange market as it could determine how quickly the US Federal Reserve will cut interest rates if the results are lower than expected. He said it will be very important for.
“Another factor that could push up the ringgit price is the outcome of the Organization of the Petroleum Exporting Countries (OPEC) meeting, and if OPEC maintains the status quo without cutting production, it could cause a fall in crude oil prices,” he said. “There is a possibility that the ringgit exchange rate will deteriorate slightly.” Bernama said.
Still, he said a hawkish surprise in the U.S. NFP data could continue to push local notes higher, but it all depends on U.S. economic data.
Kenanga Investment Bank BHD said in a research note that the ringgit could fluctuate between gains and losses as there are no factors promoting ringgit depreciation.
“However, market participants are closely monitoring core US consumer spending data, and a weaker-than-expected reading could support the ringgit.
“In addition, investors are expected to scrutinize Manufacturing Purchasing Managers Index data for both Malaysia and China for insight into the latest economic conditions in both countries,” it said.
The research firm also said any signs of economic recovery could have a positive impact on the ringgit.
Local notes were mixed in the just-ended week after minutes of the US Federal Open Market Committee’s (FOMC) last meeting showed the US central bank remained cautious in its approach to monetary policy. It became a transaction.
From Friday to Friday, the ringgit fell to 4.6830/6875 ringgit against the US dollar, from 4.6785/6825 ringgit the previous week.
The local currency unit depreciated against major currencies.
Against the euro, it fell to 5.1059/1108 from 5.0771/0814 the previous week, against the Japanese yen it fell from 3.1267/1296 to 3.1295/1327, and against the British pound it fell from 5.8056/8105 to 5.8767/8823. Before.
The ringgit also traded mixedly with ASEAN countries.
The Singapore dollar fell to 3.4903/4940 from 3.4769/4801 last week, while the Philippine peso inched down to 8.45/8.46 from 8.40/8.41.
However, the local banknotes rose against the Indonesian rupiah to 300.8/301.3 from 301.9/302.3, and against the Thai baht rose to 13.1949/2139 from 13.3298/3481 at the previous Friday’s close. – Bernama
